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Nifty To End With Limited Gains In 2021, Says BofA; To Touch 15,000 By Dec

By Staff

After the strong rally seen since April 2020, there is a limited upside in the Indian equities and the markets will end 2021 with a low single-digit gain, said an American brokerage on Wednesday. BofA Securities said it is "not as bullish" and gave a target of 15,000 points for the 50-share benchmark of NSE- Nifty 50- by the end of the newly started year.


Nifty To End With Limited Gains In 2021, Says BofA; To Touch 15,000 By Dec

Markets have rallied by 80% since April after a heavy 40% correction seen at the peak of COVID-19 panic. Many analysts, including RBI Governor Shaktikanta Das, have raised concerns over the over-heating in the markets.

The benchmark Nifty ended at another record high of 14,644.70 on Wednesday.

"We are giving a target of 15,000 on the Nifty, which means there is a limited upside now. We are still bullish, but not as bullish," its India equity strategist Amish Shah told PTI.

He mentioned the strong rally witnessed by the markets in the immediate past for its more conservative view on the markets. The brokerage is overweight on sectors including financials, metals and steel, and industrial, he said, adding that information technology, energy, consumer discretionary and auto are the sectors on which it is underweight.

The target on the benchmarks also assumes a net addition of $10 billion to the foreign portfolio flows into the country, over and above the $22 billion in 2020, he said.

The foreign flows will continue on the back of stimulus measures and easy monetary policies in the developed world, he said, adding that Joe Biden will continue with such measures in the US on taking charge.

Read more about: nifty nse nifty 50 stock market
Story first published: Wednesday, January 20, 2021, 19:21 [IST]
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