BofA: Nifty 29,000 by 2026, but mid/smallcap stocks face sharp fall.

• BofA predicts Nifty-50 to surpass 29,000 by 2026, an 11.5% increase from current levels.
• A sharp correction is anticipated in midcap and smallcap shares, while large caps are expected to outperform.
• Future Nifty growth will be driven by earnings, with limited scope for further valuation expansion.
• Risks for mid/small caps include rupee depreciation, oil price hikes, and US market corrections.
• Positive factors for the market include potential rate cuts by RBI/Fed and increased FII activity.

Why It Matters: BofA warns of sharp midcap/smallcap corrections despite Nifty's predicted rise.