Nifty may touch 14,100 by December 2021
Published On: Thursday, November 12, 2020 | By: Team KnowMyStock
Global brokerage firm Goldman Sachs and Nomura in a report dated November 11, has pegged Nifty50 target at 14,100 by December 2021and will be up 11 per cent from the current levels raising Indian Market as overweight on the back of strong capital flows. The reversal comes with foreign brokerages saying that earnings are likely to continue improving for the next two years after the sharp fall this year and a global recovery from the pandemic that jolted equity markets earlier this year. The foreign brokerage firm also highlighted that the market sentiment is high due to positive reports about the coronavirus vaccine. Nifty 50 has managed to chart its way to make fresh all-time highs repeatedly over the last few days. Goldman Sachs’ new target would see Nifty go another 11% from its current record high of 12,769 points. “We think the investment case for India has improved now, and upgrade it back to overweight,” Goldman Sachs said in a note.
Further it added "We expect 18 per cent total US dollar returns for Asia Pacific regional equities in 2021 as the global economy recovers from the pandemic shock and regional profits rebound from suppressed levels. An upturn in growth and a lag in policy tightening creates a sweet spot for equities, especially with light investor positioning,” wrote Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs.
Nomura added that the development of vaccines has demonstrated the efficacy of over 90 per cent, based on interim Phase III results. This has raised hopes of the COVID-19 pandemic being contained and people returning to normal lives. Nomura also pointed out that the September quarter earnings have beaten expectations.
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