New Delhi, Jan. 8 -- The Nifty 50 index is expected to deliver only around 7.6 per cent returns by the end of 2026 as India enters the year as one of the most expensive equity markets globally, according to a report by Bernstein.

The report said that even after assuming steady earnings growth, returns from Indian equities are likely to remain modest due to high valuations. Bernstein highlighted that while 2025 was a moderate year for earnings, its estimates still point to limited upside for the benchmark index in 2026.

It stated "we reach our Nifty target of 28,100 by the end of 2026 - which is a modest 7.6 per cent returns in the year"

According to the report, assuming a 13.5 per cent earnings compound annual growth rate (CAGR) up to ...