UBS slashes Nifty target to 8,600

Target implies an upside of 5.8% from Wednesday close of 8,124

UBS has cut its year-end Nifty target by 6.5 per cent from 9,200 to 8,600 for December 2015. The target implies an upside of 5.8 per cent from the Wednesday close of 8,124 for the 50-share blue-chip index. UBS has said the monsoon forecast has raised inflation concerns. It said the earnings estimate for Nifty companies need “further reset downwards”, as the recovery in the economy will be gradual.

Earlier, other foreign brokerages, including CLSA, Citibank and HSBC, too, had scaled back expectations from the Indian market for the year.