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What is the story about?
Brokerage firm Nomura has set a Nifty target of 29,300 for the end of 2026 in its latest note on Tuesday, December 2.
The Nifty target implies a potential upside of 12% from Monday's closing levels for the index.
Nomura has cited four factors that give it comfort when it comes to Indian equities and which lead them to their latest Nifty target.
The four factors include a calmer world, cyclical economic and earnings growth recovery, favorable policy moves to support growth and structural issue, and a moderation in relative valuations.
"We further expect policies to support domestic growth with a focus on self-reliance and efforts that seek to address structural issues," Nomura's Saion Mukherjee wrote in his note.
The brokerage said that domestic flows have remained resilience and these domestic flows, coupled with high valuations have crowded out FIIs in the recent past.
"In case there is a moderation in global rally and AI trade, FII interest is likely to improve as valuation premium is now in line with the long-term average," the note added.
The geopolitical, economic, and technological landscape remaining unsettled amidst unprecedented moves by governments, policymakers, central banks and tech companies are some key downside risks to Nomura's estimates. A rise in risk premium, substantial global slowdown and a flare up in commodity prices can also present downside risks, as per Nomura.
Here are the top picks highlighted by Nomura in its list:
The Nifty target implies a potential upside of 12% from Monday's closing levels for the index.
Nomura has cited four factors that give it comfort when it comes to Indian equities and which lead them to their latest Nifty target.
The four factors include a calmer world, cyclical economic and earnings growth recovery, favorable policy moves to support growth and structural issue, and a moderation in relative valuations.
"We further expect policies to support domestic growth with a focus on self-reliance and efforts that seek to address structural issues," Nomura's Saion Mukherjee wrote in his note.
The brokerage said that domestic flows have remained resilience and these domestic flows, coupled with high valuations have crowded out FIIs in the recent past.
"In case there is a moderation in global rally and AI trade, FII interest is likely to improve as valuation premium is now in line with the long-term average," the note added.
The geopolitical, economic, and technological landscape remaining unsettled amidst unprecedented moves by governments, policymakers, central banks and tech companies are some key downside risks to Nomura's estimates. A rise in risk premium, substantial global slowdown and a flare up in commodity prices can also present downside risks, as per Nomura.
Here are the top picks highlighted by Nomura in its list:
- ICICI Bank
- Infosys
- Bajaj Finance
- Mahindra & Mahindra
- Axis Bank
- Titan
- UltraTech
- Godrej Consumer Products
- LG Electronics India
- CG Power
- Dr. Reddy's Laboratories
- Ashok Leyland
- Dixon Technologies
- Swiggy
- Alkem Laboratories
- Mahindra & Mahindra Financial Services
- Sona BLW
- Eclerx
- Aditya Birla Real Estate
- Medplus
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