New Delhi, Dec. 2 -- Global brokerage firm Nomura has turned optimistic on Indian equities for 2026, setting a year-end Nifty target of 29,300-about 12% higher than current levels.

The projection is based on valuing the index at 21 times estimated December 2027 earnings, while also accounting for a possible 3% downside to the prevailing consensus earnings forecasts.

Nomura anticipates that Indian equities will trade at 20-22 times one-year forward earnings, provided risk premiums stay subdued. The firm had eased its valuation worries back in May 2025, after markets steadied in the aftermath of global tariff-related tensions.

Saion Mukherjee of Nomura said in the note that the optimistic view stems from a blend of easing geopolitical te...