BofA predicts NIFTY50 to touch 25K levels by Dec; check what the global brokerage said

Global brokerage firm Bank of America (BofA) securities have cut their December 2025 target for NIFTY50 to the 25,000 level from 26,500 earlier.

The NIFTY50 and SENSEX gained nearly 1% on Thursday, March 6, extending Wednesday’s bullish momentum for the second consecutive day. After falling by more than 16% from the record highs, the market has witnessed nearly a 2.5% recovery from the lower levels till Thursday, March 6.

As per a note reported by the news website, BofA also highlighted three headwinds that could weigh on markets. The possibility of tariff wars remains a concern, with potential disruptions to global supply chains making earnings growth difficult to predict.

Meanwhile, despite a sharp 21-26% correction in the mid- and small-cap stocks, BofA analysts believe the segment will continue to see negative incremental returns. They expect the growth differential between SMID caps and Nifty to narrow, leading to a contraction in their valuation premium.

The broader indices have been outperforming the benchmark indices by a wide margin, as they gained more than 1% Thursday after a nearly 2.5% rally on Wednesday.

The equity benchmark indices on Thursday, March 6, extended their gains for the second straight session, supported by the small-cap index and positive global cues. Rally in the metal and oil and gas sectors also boosted the markets.

Investors’ sentiment also boosted amid reports on likely easing of trade tensions between the US and major trading partners.

At close, the S&P BSE SENSEX stood at 74,340.09, jumping 609.86 points, or 0.83%, while the NSE's NIFTY50 index ended at 22,544.70, surging 207.40 points, or 0.93%.