Bernstein Warns: Nifty 50 Faces Muted Returns Till 2026 Amid Valuation Concerns

• Global brokerage Bernstein forecasts Nifty 50 to deliver only around 7.6% returns by end-2026, signaling moderation after strong rallies.
• Elevated valuations and potential slowdown in earnings per share (EPS) growth are key concerns limiting upside potential.
• Bernstein warns of downside risks; Nifty could slide to 24,800 (5% decline) if EPS growth slows to 8% and multiples contract to 18.5x.
• Despite domestic liquidity and steady earnings, stretched valuations make the market vulnerable to corrections.
• Investors advised to temper expectations, focus on companies with strong balance sheets, consistent cash flows, and pricing power.

Why It Matters: Nifty 50 likely to see moderate returns till 2026 due to high valuations and slower earnings growth.