Brokerages have begun cutting their Sensex and Nifty targets as worries over a Chinese slowdown and hike in US interest rates weigh on the markets.
Macquarie has cut its Nifty December target to 8,700 from 9,600, citing delay in earnings recovery. Ambit has also cut its target of the Sensex to 28,000 by the end of FY 2016 from 33,000 points earlier.
Apart from this there is an air of uncertainty surrounding the timing of an interest rate cut in the US. Strong economic data may compel the US Fed to cut interest rates in the month of December, while still others feel that given the level of uncertainty surrounding the globe on account of a slowdown in China, it would only be appropriate to cut interest rates in Dec.
The Chinese slowdown has also forced brokerages to cut their targets.