BofA Securities Cuts Nifty Target To 17,500
The brokerage blamed "weakening macros" for the revision, including rupee depreciation and also slowing global growth.
American brokerage BofA Securities on Thursday cut its Nifty 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 Nifty 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 Nifty target by the brokerage as the volatility plays out in the financial markets. The Indian macros could "deteriorate" if risks on crude and currency risks play out, BofA Securities said, adding that the possibility of further earning cuts cannot be ruled out.
It expects the current account deficit to come at 3% for FY23 as against 2.5% earlier, and sees a 0.40% upside risk to the 6.4% fiscal deficit target.
The brokerage said it expects the rupee to be trading at 83 to a U.S. dollar level by March 2023, which will be a 1.2% 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.