Nifty Head towards 18,200 in Coming Months [02-02-2022]

We believe the risk-reward has turned favourable for long term investment as majorpart of the price wise correction (8%) is already over. Therefore, investors should use the current volatility in the markets to accumulate qualitystocks as we expect the Nifty to surpass the immediate hurdle of 17600 and eventually headtowards 18200 in coming months.

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Sensex, Nifty Open Higher Ahead Of Budget 2022

India’s stock benchmarks opened higher, ahead of federal budget due to be presented in the parliament by Finance Minister Nirmala Sitharaman at 11 a.m., aided by information technology, banking, metal and realty stocks. The rise comes amid rebound in global equities due to positive spillover effects from the technology-led rally in the U.S.

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Impact on Nifty 50 fundamentals if IOCL exits Nifty 50

  • Impact on Nifty 50 fundamentals if IOCL exits Nifty 50‘Look through earnings’ of the NIFTY 50 index will drop as IOCL’s expected free float earnings for FY22 stands at Rs 51 bn or 8x of Apollo Hospitals FF earnings.
  • FY23 P/E of the NIFTY 50 index will increase by 1.3% as Apollo Hospitals’ FY23 P/E stands at 51x vs IOCL’s FY23 P/E of 6.3x.
  • FY23 RoE will expand marginally to 14.9% from 14.8% post changes while growth profile for FY23 will improve to 18.4% compared to 18%.

ICICI Direct

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