American brokerage Bofa Securities on Thursday cut its Nifty target by 1,000 points and now expects the 50-share index to trade at 17,500 points by the end of the year.
The brokerage blamed “weakening macros” for the revision, including rupee depreciation and also slowing global growth.
“We cut Nifty target to 17,500 (versus 18,500) on weakening macro; higher crude, rupee depreciation, global slowdown, China revival,” it said in a note.
In the last few months, there have been multiple revisions to the Nifty target by the brokerage as the volatility plays out in the financial markets.
The Indian macros could “deteriorate” if risks on crude and currency risks play out, it said, adding that the possibility of further earning cuts cannot be ruled out.
It expects the current account deficit to come at 3 per cent for FY23 as against 2.5 per cent earlier, and sees a 0.40 per cent upside risk to the 6.4 per cent fiscal deficit target.
The brokerage said it expects rupee to be trading at
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