PL Capital Remains Bullish on Banks, Autos, FMCG; Sets Nifty Target at 27,609
- 29th August 2025
- 12:00:00 PM
- 3 min read
Summary
PL Capital’s India Strategy Report (August 2025) sets a Nifty target of 27,609 and stays bullish on banks, autos, FMCG, healthcare, and capital goods. The brokerage sees domestic demand revival, GST 2.0 reforms, and RBI rate cuts as key drivers for India’s next growth cycle, despite external tariff pressures.
Mumbai | August 29 – PL Capital has reiterated its positive view on Indian equities, outlining a roadmap where domestic demand themes will dominate market leadership. In its India Strategy Report (August 2025), the brokerage set a fresh 12-month Nifty target of 27,609, underpinned by overweight calls on banks, automobiles, FMCG, healthcare, and capital goods.
Unlike export-driven peers, PL Capital believes India’s equity story is now defined by internal catalysts — cheaper credit, GST reforms, and fiscal tailwinds. “The fundamental drivers of India’s growth are shifting inward. As rates ease and consumption picks up, domestic sectors will deliver stronger earnings than global-facing industries,” said Amnish Aggarwal, Head of Research, PL Capital.
Core Overweights: Domestic Growth Leaders
- Banks & Financials are expected to benefit from a revival in loan demand as rate cuts filter through the system and credit quality remains stable.
- Automobiles stand out as one of the clearest beneficiaries, with lower EMIs, rural recovery, and GST rationalisation making vehicles more affordable.
- FMCG and Consumer Staples are positioned for margin expansion as input costs soften and rural spending rebounds.
- Healthcare & Pharma continue to enjoy structural tailwinds, with hospital operators and select pharma players well placed for steady compounding.
- Capital Goods & Defence gain from the government’s infrastructure pipeline and localisation push, offering multi-year visibility.
What’s Driving PL Capital’s Bullish View
PL Capital highlights several demand-side triggers that will underpin earnings momentum into FY26–27:
- RBI’s rate cuts of 100 bps, expected to reduce household borrowing costs.
- Tax relief and fiscal measures worth nearly ₹1 trillion in FY26, adding to disposable income.
- Normal monsoon conditions, boosting rural incomes and discretionary consumption.
- GST 2.0 reforms, with rationalised tax slabs expected to lower product prices across autos, durables, medicines, and staples.
Together, these factors, according to PL Capital, build the case for a broad consumption-led upturn, even as export-linked industries grapple with external headwinds.
Balancing Optimism with Risks
The strategy report also flags risks investors should monitor. US tariff actions are likely to keep pressure on exporters in sectors such as textiles, chemicals, and gems & jewellery. Geopolitical uncertainty and FII outflows may also inject volatility. Despite these, PL Capital argues that domestic liquidity, fiscal support, and policy reforms provide a strong buffer for equities.
The Bottom Line
For investors evaluating the best sectors to invest in India in 2025, PL Capital’s message is clear: stay aligned with domestic demand leaders. With a Nifty target of 27,609 and overweight positions in banks, autos, FMCG, healthcare, and capital goods, the brokerage believes Indian equities are well-positioned for their next growth phase.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
