RBS Private Banking cuts Nifty target by 8%

Says volatility could continue which will present buying opportunites

RBS Private Banking has lowered its year-end target for Nifty to 9,200, from 10,000, citing weak-than-expected earnings. “Rebounding crude oil prices and disappointing earnings have weighed on Indian equities recently. Volatility could continue but we would see that as a buying opportunity, given the support from the government’s economic reforms and easier monetary conditions,” the wealth manager said in its mid-year investment outlook 2015.

RBS Private Banking says Indian government bonds (g-secs) benefiting from the government and Reserve Bank of India’s joint commitment to fighting inflation. It also expects the European markets to post further gains on the back of improving economic data.

“Asian equities have ample scope to recover as the region benefits from improved growth and stabilisation in China,” it added.