Will Nifty 50 Touch 27,500 Mark In 2025? Banks, NBFCs, Defence, Pharma May Fuel Growth, Say Experts

Despite making a sombre start to the year with nearly 5% corrections, Nifty 50 has not only recovered but increased by nearly 5% since the beginning of the year 2025. Driven by strong fundamentals and policy support, the Nifty 50 may see a further surge in the coming months, according to experts.

United Kingdom-India Free Trade Agreement, developments around the United States trade tariffs, and other global macroeconomic factors may impact the stock market growth in the long term.

Will Nifty 50 Touch 27,000 Mark?

"Indian markets are expected to continue their upward trajectory, backed by strong macro fundamentals and policy support. With Nifty50 rebounding from March lows, resistance is expected at 26,300, and a breakout could see the index reach 27,500+ by year-end," according to a smallcase report, released on Thursday.

With the Reserve Bank of India beginning the interest-cutting cycle, favourable monsoons and under-control inflation may support further interest rate cuts, according to Vikas Gupta, smallcase Manager and CEO, Omniscience Capital.

"We believe that the markets should return to their average 5-year PE of 25. Further, if earnings growth is supportive, then the markets could be quite buoyant by the end of 2025," said Vikas Gupta.

What Are the Key Triggers To Watch Out For?

Clarity on US tariff policies, their impact on global trade flows, and resolution of geopolitical tensions in the Indo-Pacific and Middle East, and progress on key bilateral deals may impact the valuation of companies in the textiles, pharma and engineering sectors.

Top Themes With Positive Outlook

Banking, Power, Housing Finance, defence, textile apparel, pharmaceuticals, and affordable housing, etc may showcase positive growth in the coming months, as per smallcase managers.

Defence and Railways

India's strategic push for indigenous procurement and rising defence budgets may help domestic players to capture a strong multi-year opportunity, according to Niveshaay smallcase manager.

Presenting a different approach on defence and railways, Omniscience Capital manager mentioned ",We expect budget increases in Defence and Railways which give comfort on the growth front. However, we are cautious on Defence due to valuation concerns, while Railways is slightly better on valuation comfort but not as much as the sectors outlined earlier." The expert had extended confidence in banking, power, financing, housing and other sectors.

Pharmaceuticals

Multiple managers believe that the pharmaceutical companies may see strong growth in the coming months, apparently due to the rising dominance of Indian companies in the global scenario. Recently, Glenmark Pharmaceuticals is making headlines with its exclusive cancer drug deal.

Affordable Housing

"Affordable housing is set to grow strongly in FY26, driven by rising income levels, urbanisation, and supportive government infrastructure schemes. With inventory levels at a multi-year low and demand recovering, real estate developers have clear visibility on growth. Additionally, RBI rate cuts will lead to lower home loan EMIs, significantly boosting housing demand and benefiting players in the affordable segment. Companies in this space have 13-15% sales growth and potential for improved profitability," according to GoalFi.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.