Mumbai, May 28 (IANS): The Nifty can touch 26,500 levels in the next 18 months. brokerage firm Emkay Global Financial Services said in a report on Tuesday.

Emkay Global expects the Nifty to reach 24,500 by December 2024 and further scale up to surpass the 26,500 levels by December 2025.

According to the report, in the immediate near term, the markets are going to focus on Lok Sabha election results. An expected return of the NDA regime with a base case scenario of 330 seats will result in policy continuity along with major reforms that will support the positive sentiment in the Indian markets.

The brokerage firm also advised having a multi-cap approach with equal proposition in largecaps and midcaps to take advantage of the broad-based growth in the Indian equity markets.

Sharing views on the sectors, Manish Sonthalia, Chief Investment Officer, Emkay Investment Managers Ltd. (the portfolio management services arm of Emkay Global Financial Services), said, “BFSI, PSUs, and industrials are expected to do well. BFSI has led the earnings growth and seen a correction in valuation. Investment-related themes will come into play with power capex building up in the next three to five years."

"We are re-rating public sector units as some of the government entities will have an advantage in sectors such as defence, oil marketing companies, and power finances," he added.