Gold Silver Reports – Street Expects Nifty to Touch 11,000 By March 2018 – Indian markets are set to race ahead in the next six months with the Nifty likely to touch 11,000 by March.
Nearly 50% of the respondents believe the Nifty will achieve this mark by the end of this financial year, while 46% expect it to rise by 3%, or by about 300 points, by this December.
The poll captured a mood of buoyancy, tinged with some caution, among the 20 brokerages after the sharp run-up of 25% in the Nifty in the year since last October. Worries over pace and quality of earnings growth have dominated conversations during the run-up, but a spurt of massive inflows from domestic mutual funds and insurance companies has sustained the markets.
Many brokerages expressed concern about the extent of earnings, with about 33% of the poll participants expecting an EPS growth of 13-15% for FY19, and an equal number saying the Nifty EPS could grow over 30% in that year.
“Currently, equities may look expen sive because of excessive domestic liquidity, but recovery in earnings will support the valuations in the coming months,“ said Raamdeo Agrawal, joint managing director, Motilal Oswal Financial Services. “I think the current upward trend will continue with positive global environment.“
Read More: F&O Actions Hint a Fall Substantially Below 10,000 Level Looks Unlikely
FII flows have shrunk in the last few months on expectation of a strengthening US dollar and foreign funds have been net sellers for two straight months, August and September, and for most of October. Fears of geopolitical tension getting out of hand, like between North Korea and the US, have kept markets on the edge. The possibility of the Federal Reserve stepping up its pace of hikes has also worried foreign investors.
The poll showed concern among investors about the lack of earnings growth with nearly 40% respondents citing it as the biggest worry for markets. About 24% cited geopolitical tensions. Other issues like rising crude prices, bad loan clean-up and unemployment figured low on the list of concerns.
