The country's Nifty50, one of the main benchmark indices of the share market, has been rising consistently for the past decade. However, in 2025, that growth has faced setbacks due to various reasons. Though this share index has managed to handle the impact of the decline quite well. Market analysts are hopeful of significant growth in the Nifty50 in 2026. Analysts from many brokerage firms are saying that Nifty50 could touch 29,000 points by December 2026. But that doesn't mean there are no risks. Market analysts have identified seven risks. They fear these factors could hinder Nifty50's growth.
India-US Trade Agreement Complications: Complications regarding the trade agreement between India and the US continue. But if this agreement gets delayed beyond January-February 2026, it could create disappointment in the market. Its impact could affect exports and overall market sentiment.
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Geopolitical Instability: Uncertainty in world politics is increasing. Changes in trade policy and foreign relations could create instability in global markets. Its impact could also hit the Indian share market.
AI Share Risks: There are concerns about excessive valuation in US technology and AI-dependent shares. AI company shares have seen massive growth in the past few years. Experts believe that if those shares undergo major corrections, their impact could spread to India's market as well.
Income and Valuation Mismatch: Nifty50's valuation is still quite high. But companies' income growth is not happening at that pace. If income growth falls short of expectations, pressure in the market could increase.
Crude Oil Price Rise: If crude oil prices suddenly increase significantly, it would be a major risk for India's economy. Rising oil prices increase inflationary pressure. The share market cannot escape its impact.
Rupee Depreciation: The rupee's weakness reduces returns for foreign investors. Continuous depreciation could further reduce foreign investment. This could become an obstacle in Nifty50's growth path.
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Excessive IPO and Share Supply: Multiple IPOs, FPOs and promoters' share sales have increased share supply in the market. If demand doesn't increase, its impact could affect the index.
All in all, Nifty's path in 2026 is not easy. Understanding the risks before investing and making cautious decisions would be wise.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
