Indian equity markets expected to open flat as Nifty consolidates near 25,482. Nomura maintains bullish December 2026 target of 29,300, dismissing premature AI-deflation fears in IT sector. The brokerage projects steady Q3 earnings momentum across 255 companies with low estimate revision risk. IT stocks have turned attractive following recent declines, with valuations at 14-18x P/E offering compelling entry points. Nomura favors financials, cement, consumer discretionary, auto ancillaries, telecom and pharma. Global triggers including US-Iran developments and tariff news will guide near-term sentiment. Brokerages remain largely positive on India Inc results, with PL Capital highlighting growth catalysts from new trade deals and demand revival driven by lower inflation and GST rationalization.
