The brokerage noted that the 50-share index has already neared its earlier target of 25,500 and is now poised to test its all-time high of around 26,300. A decisive breakout above this level, it said, could pave the way to 28,500. The June 2026 target is based on a 30% rally post a 17% average correction and the upper band of the rising channel.
Analysts draw confidence from historical data showing that in structural bull markets over the past three decades, buying around 18% corrections has typically yielded 30% returns within 9–12 months. The report added that the Bank Nifty has also offered favorable entry points near its 52-week EMA, consistently delivering at least 20% returns over eight months.
The brokerage also highlighted macro factors likely to support Indian equities. These include a consumption boost from GST-led reforms, improving prospects from global rate cuts, and a weaker US dollar index, which typically drives foreign inflows into emerging markets. Seasonality trends, too, favor equities, with the second half delivering positive returns 72% of the time since 2000, averaging 12%.
Broader markets are also expected to join the rally. ICICI Securities said the Nifty Midcap index, after a 23% correction, is now positioned for up to a 50% rise over the next 9–12 months. The Smallcap index, meanwhile, is eyeing a breakout toward 23,000 after retesting decade-long support, following a sharp 36% rebound from its lows.
Sector-wise, ICICI Securities expects BFSI, auto, consumption, and metals to lead the next leg of the rally, while IT, capital goods, infra, PSU stocks, and oil & gas could present bargain-buying opportunities. The brokerage also projected that the Bank Nifty could rise to 63,000 by June 2026, supported by its relative outperformance to the benchmark. Nifty, meanwhile, is up 6% year-to-date.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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