India Strategy – Geopolitical mess clouds economy and markets
Published on 21 Apr 2026
NIFTY is trading at 12% discount to 15- year average PE, testing the multiples at the time of GST 1.0 and Demonetization. Probability of market breaching recent lows looks difficult, but for significant deterioration in geopolitical scenario. NIFTY EEPS has seen a change of 0.2/-1/-1.6% for FY26/27/28 with 4% EPS growth in FY26 and 15% CAGR over FY26-28 with FY26/27/28EPS of Rs1172/1356/1551. NIFTY is currently trading at 17x 1-year forward EPS, which is at 12.4% discount to 15-year average PE of 19.4x, we value NIFTY at 10% discount to 15-year average PE of 17.5x with FY28 EPS of 1551 and arrive at 12-month target of 27080 (27958 earlier).
