BackDeutsche Bank cuts December 2015 Sensex target to 31,000
India will not be immune to global volatility, but it may still outperform its emerging market peers, says the report
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Mumbai: Deutsche Bank cut its December Sensex target to 31,000 points from 33,000 earlier, citing a more muted environment for foreign inflows.
“2HCY15 is likely to be marked by a tug of war between global headwinds and domestic tailwinds," Deutsche Bank analysts Abhay Laijawala and Abhishek Saraf wrote in a note on Tuesday.
“While Fed lift-off concerns and global bond volatility should lead to a more muted and uncertain environment for foreign inflows, the domestic macro environment appears to be on an improving trajectory," they added.
The analysts wrote that they believe the worst of the corporate earnings downgrades may be behind. India will not be immune to global volatility, but it may still outperform its emerging market peers based on an improving domestic economy, return of government spending and the end of earnings downgrades.
On Tuesday, the BSE’s benchmark 30-share index closed 0.55% or 146.15 points higher at 26,832.66 points, but it is still down 2.4% year to date. It is the only market to post negative returns so far in 2015, amongst the BRIC (Brazil, Russia, India and China) economies.
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