CLSA sets Nifty
year-end target at 11,000; says re-rating unlikely in 2019
Foreign brokerage CLSA has
cautioned investors to brace for volatility in the market going ahead and has
set a December-end target of 11000 for the Nifty, which means a potential
upside of 2 .5 per cent.
The Nifty ended up 55.10 points, or 0.5 per cent, at 10727.35
on Friday.
Above-average valuations and political uncertainty make a
rerating unlikely in 2019, the brokerage said. Even as there is a high
possibility of double-digit earnings growth, much of it is priced in, said
C .
·
Above-average valuations and political uncertainty make a rerating
unlikely in 2019
·
The brokerage prefers stocks which are strong structural stories.
· we expect single-digit 2019 market returns,
at best,” said the brokerage.
www.adviserstreet.com
FOREIGN & DOMESTIC FLOWS
Given the political uncertainty and possible
fallout of the crisis in non-banking finance companies, downward pressure on
domestic flows is possible and foreign flows are likely to remain tepid,
according to CLSA.
Domestic flows gathered pace after Narendra Modi came to power in 2014. However, flows came down to $1-1.5 billion during FY19 from the peak of about $3 billion a month in the previous financial year.
Domestic flows gathered pace after Narendra Modi came to power in 2014. However, flows came down to $1-1.5 billion during FY19 from the peak of about $3 billion a month in the previous financial year.
“Domestic flows have been a critical support for the markets given that FIIs have seen outflows of $4 billion during this period. Recent state election results may increase fears of an unstable government among retail investors and this could impact market inflows,” said the brokerage
