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

NEW DELHI: Citing near-term macro headwinds, global brokerage BofA Securities has lowered its year-end target for Nifty from 16,000 to 14,500 points, as previously forecast in January.

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

BofA expects the price of crude oil to remain at a higher level. As valuations can be even more risky, it chooses to remain cautious.

It advised investors to favor defensive stocks in basic commodities, healthcare and utilities, and said it could reduce overweight skew in financials/industrials. The brokerage remains underweight discretionary and materials.

Amid heavy outflows of foreign investors from geopolitical tensions, high crude oil prices, concerns about a slowdown in growth and aggressive rate hikes by central banks, Nifty is down about 16% from its all-time high last October. year.

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For Nifty, which peaked at 18,604.45 on Oct. 19, the threshold of 14,882 marks a bear zone as a 20 percent drop from the peak is considered a bear market.

FPIs have so far withdrawn about Rs 3 lakh crore from Dalal Street in the nine months to June, NSDL data shows.

In the meantime, downward revisions to earnings estimates by analysts at leading brokers have outnumbered the revaluations in number over the past four weeks. Of the companies in the Nifty 200 index, 30 have seen earnings downgrades for FY23 in the past four weeks, while 19 have seen upgrades.

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

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