09 Aug , 2021 By : Kanchan Joshi
The NSE Nifty 50 Index will fall to 15,500 by the end of June 2022, down almost 5% from Friday’s close, according to the UBS Group AG. The key gauge last week rose above 16,000 for the first time.
Of the Nifty companies that have reported so far, profits for about 58% have missed analyst estimates. Meanwhile, the surge in share prices has the Nifty trading at 21.3 times estimated 12-month earnings, much higher than its five-year average of 18 times. The MSCI Emerging Markets Index is trading at a multiple of 13 times.
Sunil Tirumalai, head of India strategy, told Bloomberg that investors pulling out of China due to the recent regulatory crackdown may snub the Indian capital market, where stocks are looking pricey after their climb to successive records.
“The perception of risks in China has gone up and may lead investors to take out money and deploy it into other emerging markets," said Tirumalai. “However, given the expensive valuations for India, this money may flow into other markets."
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