Nifty might be in for a roller coaster ride in 2026 as several projections have forecasted an upside of over 10% for the index. Nomura pegged the NSE benchmark Nifty at 29,300 for the next year, a level that signals almost 13% upside from Tuesday’s closing mark of 26,032.20, when the index slipped 144 points, or 0.6%.The brokerage also released its list of top picks: ICICI Bank, Infosys, Bajaj Finance, Mahindra & Mahindra, Axis Bank, Titan, Ultratech Cement, Godrej Consumer Products, LG Electronics, CG Power, Swiggy, Dr Reddy’s, Dixon Technologies, Alkem, Mahindra Finance, Sona Comstar, eClerx, Aditya Birla Real Estate and MedPlus.Nomura attributed its optimism to improving conditions at home and abroad. “A positive view on valuation is now underpinned by calmer geopolitics, stable macros, and a cyclical recovery in economic and corporate earnings growth,” the firm said in its client note cited by ET. It also highlighted that the Indian equity market has trailed most global markets for 14 months, bringing the valuation premium “aligned to historical averages.”The brokerage’s estimates come as other global institutions like Goldman Sachs and HSBC predict a bullish stance. The entities recently predicted gains of 12% and 10% in the Nifty and Sensex respectively in 2026.Even so, Nomura struck a cautious tone on overseas capital flows. It does not foresee a sharp increase in foreign portfolio investments, although it expects marginal improvement next year. “In case there is a moderation in global rally and AI trade, FII interest is likely to improve as valuation premium is now in line with the long-term average,” it said.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)