PL Capital has increased its one-year price target for the Nifty 50 index to 27,019, up from a previous estimate of 26,449.
The brokerage cited an improving macroeconomic backdrop, resilient domestic demand, and moderating crude oil prices as key drivers for the more optimistic outlook on Indian equities.
The target hike comes as Indian markets opened higher on Monday, with the benchmark Nifty 50 index rising 0.44% and the Sensex adding 360.85 points to trade at 77,163.75.
The positive start reflects a shift in investor sentiment, supported by the brokerage's view that current conditions favor further equity gains.
Despite the bullish revision, PL Capital flagged key risks that could temper market performance.
Geopolitical tensions remain a concern, alongside the potential impact of El Niño weather patterns on agricultural output and inflation dynamics.