BofA released this report Nifty may touch 20,500 mark by December
[ad_1]
Mumbai: Bank of America has raised its outlook for the Indian stock market and expects the NSE Nifty to touch 20,500 by December. This is because of strong capital inflows domestically and the removal of fears of a recession in the US. This report comes a week after the Morgan Stanley report. In it, the Indian stock market has been said to come first among the emerging markets of Asia (except Japan).
Analysts at Bank of America (BofA) believe that the domestic market is getting strength from buying in shares of medium and large companies in financial, industrial, auto, pharmaceutical sectors. While these sectors remain attractive, areas such as information technology, people-centric and content remain less attractive. BofA said, “We estimate that by December the Nifty may reach 20,500 points. The reason for this is the removal of the fear of recession in America. This will ensure capital inflows and strong domestic inflows.
The second factor, the report said, is domestic capital inflows, which are likely to remain strong. Third, the market valuation of one-third of the Nifty is still below the long-term average valuation. This provides a buying opportunity. On the other hand, there is also some risk. These include fears of a sharp rise in inflation in commodity prices on the back of a recent rise in crude oil and erratic rains and the prospect of stimulus in China. According to the report, however, the impact of these factors will be temporary or not very significant.
[ad_2]
Source link
