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Bofa cuts Nifty target by 1,000 pts to 16,000, sees flat market this year

Says any easing in global crude, FPI outflow reversal and bottoming of rupee will be positive for market. Key downside risks include higher global inflation and faster rate hikes

BofA | Nifty

BS Reporter  |  Mumbai 

markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain

Securities on Tuesday cuts its target to 16,000 from 17,000 earlier. The brokerage expects the market to remain flat this year on concerns such as front-loading of interest rate hikes in the US; high domestic inflation and recent off-cycle rate hike by the RBI. said any easing in global oil prices, reversal in FPI outflows and bottoming of the rupee will be a positive for the market. Key downside risks include a higher global Inflation prints resulting in faster than anticipated rate hikes. “In this negative scenario, we see Nifty's valuation multiple shrinking to its long-term average of 15.8 times, resulting in an index at 13,700,” said strategist Amish Shah.

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First Published: Tue, May 17 2022. 20:01 IST