Stock market crash: Prabhudas Lilladher cuts Nifty 50 year-end target to 27,381, recommends ‘buy on dips’ for long term | Stock Market News
Source: Live Mint
Stock market crash: Amid the current stock market correction, domestic brokerage Prabhudas Lilladher has cut domestic equity benchmark Nifty 50’s year-end target to 27,381 amid the current stock market correction. According to analysts, Indian markets are on course but headwinds are yet to peak out.
“The firm has cut its base case NIFTY target to 27,381 (27,867 earlier) on Nifty EPS cut by 0.5/2.0/1.5 for FY25/26/27 and recommends selective buying on dips for long-term gains,” said the domestic brokerage in its report
According to the report, demand conditions remain mixed with steady uptick in rural demand given low base and normal monsoons. However, rising inflation is affecting demand in urban India (yet to play out fully), more so in metros and big cities, which account for ~35 per cent of the total demand in the economy. All hopes now rest on the demand surge in festival and wedding season.
PL Capital expects interest rate cut only post budget as the spike in food inflation to 10.9% (CPI increase to 6.2%) takes it much above comfort level of the RBI. The broking firm suggests stock specific approach given tepid demand scenario. PL Capital believes Capital Goods, Infra, EMS, Hospitals, Pharma, Tourism, Auto, New Energy, E-com, Jewellery are good themes to play at current valuations.
The benchmark index NIFTY50 is down 6% cut since October 12, showing the impact of ₹72,000 crore FII selling amidst Donald Trump’s victory in US presidential elections, sustained geopolitical uncertainty, strength of USD and softening of Gold prices.
PL Capital highlights three factors that can support growth going, ahead:
1) Results of recent state/Bye elections in Maharashtra, Haryana, UP and Bihar have consolidated the position of ruling NDA which will provide much needed stability and resolve to push for reforms.
2) Trump 2.0 is likely to see some reduction in global wars, lesser geo political uncertainty and stable crude prices.
3) Expected revival in government capex as 2Q capex has turned positive and 1H capex is only 37% of FY25 BE.
