Bernstein flips tactical on India as US trade deal slashes tariffs; sees short-term Nifty rebound to 26,500

Bernstein has turned tactically bullish on Indian equities following the India-US trade deal, which reduces effective US tariffs on Indian goods to 18%. The brokerage predicts a short-term rebound in the Nifty index to 26,500, although it maintains a year-end target of 28,100. Bernstein emphasizes that the rebound is sentiment-driven rather than earnings-driven, as the market has been weakened by soft earnings and a lackluster budget. The firm favors sectors like Financials, IT, and Telecom for potential gains, while cautioning that valuations remain high despite recent corrections.