India’s benchmark index Nifty 50 is on track to potentially touch the 30,000 mark within the next two years, according to Anil Rego, Founder and Fund Manager at Right Horizons PMS. In a recent interview, Rego highlighted that strong domestic fundamentals, rising retail investor participation, and robust earnings growth are laying the groundwork for a sustained bull run. With Nifty already approaching 26,000, the next leg of the rally could be driven by select sectors that are poised to outperform the broader market.
Rego’s optimism stems from structural shifts in India’s equity landscape, including the rise of domestic mutual fund flows, improving macroeconomic indicators, and a favorable policy environment. He believes that investors should focus on sectors with long-term visibility, earnings resilience, and policy tailwinds.
📊 Nifty’s Trajectory and Market Outlook
| Metric | Value (Oct 2025) | Projected (2027) |
|---|---|---|
| Nifty 50 Index | ~25,800 | 30,000+ |
| Market Cap (NSE) | $3.7 trillion | $4.5–5 trillion |
| Retail Investor Accounts | 14.2 crore | 18+ crore |
| Mutual Fund SIP Inflows | ₹18,000 crore/month | ₹22,000 crore/month |
The rally is expected to be earnings-led, supported by domestic liquidity and sectoral rotation.
🧠 Anil Rego’s Top 3 Sector Picks for 2025–2027
| Sector | Key Drivers of Growth |
|---|---|
| Banking & Financial Services | Credit growth, fintech integration, NPA moderation |
| Consumption & Retail | Rising disposable income, urbanization, digital retail |
| Infrastructure & Capital Goods | Government capex, private investment revival |
These sectors offer a blend of cyclical recovery and structural tailwinds, making them ideal for medium-term allocation.
🏦 Sector 1: Banking & Financial Services
- Credit growth is accelerating across retail and MSME segments.
- Fintech partnerships are enhancing customer acquisition and operational efficiency.
- Asset quality is improving, with gross NPAs at multi-year lows.
- Valuations remain attractive for select PSU and private banks.
| Sub-segment | Outlook Summary |
|---|---|
| Private Banks | Strong balance sheets, digital edge |
| NBFCs | Focused lending, niche growth |
| Insurance & AMCs | Underpenetrated market, long-term tailwind |
🛍️ Sector 2: Consumption & Retail
- India’s middle class is expanding, driving discretionary spending.
- E-commerce penetration is rising in Tier 2 and Tier 3 cities.
- Brand consolidation is underway, favoring listed players.
- GST and tax reforms have streamlined supply chains.
| Sub-segment | Outlook Summary |
|---|---|
| FMCG | Stable demand, rural recovery |
| Apparel & Lifestyle | Premiumization trend, online growth |
| Quick Commerce | High growth, investor interest |
🏗️ Sector 3: Infrastructure & Capital Goods
- Government spending on roads, railways, and energy is at record highs.
- Private capex is reviving after a decade-long lull.
- PLI schemes are boosting domestic manufacturing.
- Urban infrastructure and smart cities are driving demand.
| Sub-segment | Outlook Summary |
|---|---|
| Construction | Order book visibility, execution strength |
| Engineering | Export potential, automation adoption |
| Power & Renewables | Energy transition, grid modernization |
🗣️ Anil Rego’s Commentary
Rego emphasized, “The rise of domestic investors anchoring market sentiment signals a permanent structural shift in India’s equity market dynamics. Sectors like banking, consumption, and infrastructure are not just cyclical plays—they represent India’s growth story over the next decade.”
He also noted that rate cuts, if initiated in 2026, could act as a tailwind for earnings and valuations across these sectors.
📌 Conclusion
With Nifty 50 potentially heading toward the 30,000 mark by 2027, investors must look beyond index-level moves and focus on sectoral leadership. Anil Rego’s picks—banking and financial services, consumption and retail, and infrastructure and capital goods—are backed by strong fundamentals and policy support. Allocating to these sectors could offer superior returns in a structurally bullish market.
Disclaimer: This article is based on expert commentary and publicly available financial data. It does not constitute investment advice. Readers are advised to consult certified financial professionals before making investment decisions.
