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BofA Securities analysts stated in a notice Wednesday that the agency stays constructive on the Nifty and expects it to achieve 24.5K by December 2024.
Of their notice, the analysts additionally highlighted the agency’s view of various sectors, at the same time as they maintain a cautious view on earnings progress, estimating 11% progress for FY25/26, which is decrease than the Avenue view.
Supportive world elements together with a smooth touchdown within the US and a Fed pivot, in addition to a powerful macro in India, are anticipated to take the Nifty greater. Resilient demand flows and potential reform momentum acceleration after the final elections are different causes cited by analysts.
BofA is on the similar time cautious on SMID caps and PSUs, however sees “pockets of alternatives” for shares that would profit from upcycles (industrials and actual property) or from rising themes together with journey & tourism, vitality transition, premiumization, evolving provide chains and bettering productiveness.
“Regardless of the latest correction (10%-14%) for SMID caps, we keep cautious on liquidity, valuations and focus,” stated the analysts.
With PSUs, the agency prefers shares with comparatively excessive visibility of earnings (protection, railways) and low-cost valuations (banks, energy financiers & upstream vitality gamers).
The analysts added that they proceed to favor Funding over Consumption, and Cyclicals over Defensive. They favour Financials, Industrials, Passenger Autos, non-ferrous metals, and upstream vitality; are impartial on Telecom; and underweight on Healthcare, Utilities and Metal.
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