Indian Equities Soar to New Highs by 2026, Domestic Money Trumps Foreign Outflows

• Indian equities, including Nifty 50 and Sensex, are projected to reach fresh record highs by mid-2026 and continue gains through 2027, according to a Reuters poll.
• Domestic institutional investors (DIIs) poured $77 billion, significantly offsetting the $17 billion pulled by foreign investors this year, stabilizing the market.
• Optimism is driven by India's "constructive growth narrative," policy support, macro stability, consumption, and infrastructure spending, creating a "Goldilocks environment."
• Nifty 50 is forecast to hit 27,200 by June 2026 and 28,850 by mid-2027; Sensex is expected to reach 89,430 by mid-2026 and 95,000 by mid-2027.
• Risks include slow corporate earnings growth, high valuations, and US tariffs, but analysts see a sharp correction as unlikely due to domestic liquidity.

Why It Matters: Indian equities are set for new highs by 2026, driven by strong domestic investment despite foreign outflows.