[Bank of America maintains India's Nifty 50 index's December target of 26,200 points unchanged, with room for 4.7% growth] On November 11, Bank of America maintained India's Nifty 50 index's December 2026 target of 26,200 points unchanged, which still has room for approximately 4.7% growth from the current level of 25,044 points. The bank believes that risks such as rising commodity prices, depreciation of the rupee, and expectations of interest rate hikes by the Federal Reserve and the Bank of India that previously suppressed the Indian stock market have been largely reflected in valuations, while corporate profits are accelerating their recovery. Earnings of Nifty 50 constituent stocks in the second quarter of fiscal year 2027 are expected to increase by 18% year-on-year, significantly higher than the 5% in the fourth quarter of fiscal year 2026; the index's current price-to-earnings ratio based on the profit forecast for the next year is 18.3 times, lower than the long-term average of 18.8 times, providing room for valuation recovery. In terms of risks, Bank of America warned that the possible El Niño phenomenon in 2027 may impact agricultural production and economic growth. The current water storage in India's reservoirs is already 18% lower than normal levels; the increase in expenditures related to the eighth compensation committee may also increase financial pressure and crowd out government capital expenditures. On the allocation front, the bank is more bullish on large-cap stocks and has upgraded its ratings on hospitals and telecom sectors, while turning cautious on the two-wheeler sector.