BoFA 2025 Outlook: Nifty target at 26,500 with cautious growth prospects

Bank of America's report projects the Nifty to reach 26,500 in CY25, with a return of less than 9%. Indian markets could underperform against US equities. Weak capital expenditure and high welfare spending are expected to contribute to subdued earnings growth. Foreign and Domestic Institutional Investor inflows might remain weak due to strong US bond yields.