JPMorgan has set a target of 27,000 for the Nifty index as value-oriented investing returns to Indian equities, though elevated US bond yields could cap emerging-market flows, according to Sanjay Mookim, Head of India Equity Research at JPMorgan.

Mookim said long-only investors are showing renewed interest in Indian equities. However, he cautioned that high US Treasury yields may limit flows into emerging markets, including India. The concern reflects a broader dynamic: when US yields rise, dollar-denominated fixed-income assets become relatively more attractive, often weighing on the appetite of foreign institutional investors for riskier emerging-market equities.

On sector positioning, Mookim remains positive on financials, pharmaceuticals, healthcare, defence, and select power stocks. His preference for defensive sectors such as pharmaceuticals and healthcare, alongside policy-linked areas like defence and power, aligns with the broader rotation toward value-oriented stocks — companies trading at lower valuations relative to fundamentals — rather than the high-growth names that led markets in recent years. Within consumption, he prefers consumer discretionary names over staples, which he views as expensive.

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Source: CNBC-TV18