Brokerage house Ambit Capital has revised the BSE Sensex target to 28,000 from 32,000. (Photo: PTI)
The Sensex dropped over 900 points for the week ended August 28 owing to extremely negative global cues. After the downfall on the domestic equity bourses last week, brokers have downgraded their targets for the key benchmark indices.
Brokerage house Ambit Capital has revised the BSE Sensex target to 28,000 from 32,000.
Macquarie and Barclays too have downgraded the December target for Nifty to 8,700 and 9,642 from 9,600 and 10,219 earlier.
Bank of America Merrill Lynch in a research report said, “Our equity strategists expect corporate earnings to begin to turn up in September from June’s anemic 1%. They still see downgrades that will pull the BSE Sensex consensus earnings down to 12 per cent from around 18 per cent now.”
According to brokers, delay in earnings recovery and real estate issues make India risky. India has seen FIIs sales for 3 out of last 4 months so far, exchange data shows.
However, most agree India remains in a sweet spot among emerging markets due to crude oil slump and ongoing reforms. Citi stays positive on India story and maintains target of 32,200 on the BSE index.
Vineeta Mahnot, equity research analyst, Hem Securities, said, “Turbulence in the global markets triggered by the Chinese meltdown and devaluation of the currency by the country thereby, sharp sell-off by the investors across the globe, continued weakness in the commodity prices and rupee depreciation created worrisome for the investors. Trend in global markets and global macro economic data and movement of commodity prices globally will dictate the trend on the bourses. Market seems to continue its southward journey in the week ahead too; However, auto sales number, Indian GDP growth numbers will be important data to watch out for. Buying at the lower level may register some gains for the indices.”
(With inputs from Reuters)
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