Nifty projected to reach 25,521 in next 12 months: Report

In the short term, sectors focused on the Indian market -- such as hospitals, domestic pharma, retail, some FMCG companies, banks, defence, and power -- are likely to perform well, said financial services firm PL Capital in its report.

While the target is marginally lower than its earlier estimate of 25,689, the brokerage firm maintains confidence in India's long-term growth story and expects key sectors to provide resilience and support to the market.

PL Capital remains optimistic about the market's ability to absorb global shocks and continue its growth trajectory, supported by favourable policy measures and strong domestic fundamentals.

In a more bullish scenario, the index could rise to 27,590, while a more conservative outlook suggests a potential level of 24,831 -- showing that the market offers room for both caution and opportunity.

However, Nifty has seen a minor correction of 3.8 per cent so far in 2025, amid macroeconomic headwinds and global developments, including the ongoing US-China trade discussions.

However, the report underlines that India remains well-positioned due to strong policy support and emerging sectoral opportunities.

In the near term, the report expects sectors focused on the domestic economy to perform better.

"These include hospitals, domestic pharma, retail, select FMCG companies, banks, defence and power," the report said.

Sectors such as IT, cement, capital goods, and consumer businesses are also projected to maintain stable growth, while companies continue to adapt to changing dynamics.

"Volatility in commodity prices, particularly crude oil, may create short-term challenges for some sectors," the report mentioned.

However, recovery in cement demand, driven by rising construction activity and expected price improvements, is likely to support sectoral profitability.

On the global front, India is expected to conclude a trade agreement with the United States, which may include positive developments across sectors such as auto, consumer goods, defence, oil and gas, liquor and technology.

The report also sees scope for gains in textiles, apparel and electronics.