Monday 31 August 2015

Barclays, Macquarie Trim Nifty Target, Citi Remains Bullish

Two global investment banks have trimmed the targets of domestic benchmark indices following the global upheaval in stock markets last week.

Barclays has reduced its Nifty target from 10,219 to 9,642 saying June quarter earnings performance was weak. It noted that operating performance (EBITDA) was better than topline, but added that earnings are likely to bounce-back in second half of this fiscal in several sectors.

Macquarie cut its December 2015 Nifty target from 9,600 to 8,700 to factor in lower earnings. It expects earnings weakness to continue in the September quarter.

However, Goldman Sachs retained its "overweight" call on India. The brokerage has a 12-month Nifty target of 9,300. Citi too retained its positive outlook on Indian equities. The global investment bank expects the BSE Sensex to hit 32,200 by December end. Citi expects Sensex to 35,000 levels in June 2016.

Among stocks, Macquarie retained its "buy" rating on Asian Paints, Coal India, DLF, L&T, Maruti Suzuki, Sun Pharma, TCS and HDFC Bank.         

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