June30 , 2022

Nifty target: BofA slashes December-end target for Nifty to 14,500

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NEW DELHI: Citing near-term headwinds on the macro front, global brokerage BofA Securities has slashed its year-end target for Nifty to 14,500 points from 16,000 as projected earlier in January.

The brokerage said the near-term headwinds include fast tightening monetary conditions, slowing growth or fears of US recession and likely Nifty EPS cuts, ET Now reported.

BofA expects crude oil prices to sustain at higher levels. As valuations could be at further risk, it chooses to remain cautious.

Advising investors to raise skew towards defensives in staples, healthcare and utilities, it said one can trim overweight skew in financials/industrials. The brokerage remains underweight on discretionary and materials.

Amid heavy outflow by foreign investors due to geopolitical tensions, high crude oil prices, growth slowdown concerns and aggressive central bank rate hike fears, Nifty is down about 16% from its all-time high touched in October last year.

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For Nifty, which peaked at 18,604.45 on October 19, the threshold of 14,882 marks bear zone as a fall of 20 per cent from the peak is regarded as bear market.

FPIs have pulled out about Rs 3 lakh crore from Dalal Street in the nine months to June so far, NSDL data shows.

In the meantime, downgrades in earnings estimates by analysts at leading brokerages have outnumbered upgrades in the past four weeks. Out of the companies in the Nifty 200 index, 30 have seen earnings downgrades for FY23 in the past four weeks, while 19 have witnessed upgrades.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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