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HomeBusinessBofA Sec cuts Nifty target to 17,500 pts amid multiple headwinds

BofA Sec cuts Nifty target to 17,500 pts amid multiple headwinds


American brokerage BofA Securities on Thursday cut its target by 1,000 points and now expects the 50-share index to trade at 17,500 points by the end of the year.

The brokerage blamed “weakening macros” for the revision, including rupee depreciation and also slowing global growth.

“We cut target to 17,500 (versus 18,500) on weakening macro; higher crude, rupee depreciation, global slowdown, China revival,” it said in a note.

In the last few months, there have been multiple revisions to the target by the brokerage as the volatility plays out in the financial .

The Indian macros could “deteriorate” if risks on crude and currency risks play out, it said, adding that the possibility of further earning cuts cannot be ruled out.

It expects the current account deficit to come at 3 per cent for FY23 as against 2.5 per cent earlier, and sees a 0.40 per cent upside risk to the 6.4 per cent fiscal deficit target.

The brokerage said it expects rupee to be trading at 83 to a USD level by March 2023, which will be a 1.2 per cent depreciation more from the present levels.

On the high credit growth in the banking system, the brokerage said lower base and inflation are partly driving this nominal growth.

Bofa Securities also said it expects “more modest” credit growth numbers during the second half of the fiscal.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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