Nomura, Credit Suisse, Goldman Sachs turn cautious on Indian equities

Analysts at Credit Suisse say the overall trend remains down and expect the Indian equities to grind lower in the coming months

Foreign brokerages such as Nomura, Goldman Sachs and Credit Suisse have turned cautious on Indian equities. 

In a recent report, Saion Mukherjee, head of India equity research at Nomura, said he expects the markets to slip further from the current levels and has cut the target level for the Nifty50 index.

“The market valuations have corrected significantly from 18.8x at the peak in August 2018 to 16.1x one-year forward earnings currently. The valuations were stretched, given the rise in yields since the start of the year. To a large extent, the recent market fall has corrected the excessive valuations. However,