India's Nifty could post 5% gains next year -BofA Securities - Reuters

BENGALURU, Dec 13 (Reuters) - India's benchmark Nifty 50 scale (.NSEI) volition emergence astir 5% adjacent year, which would beryllium its slowest maturation successful 5 years, BofA Securities estimated, but besides said Indian stocks were a bully stake if a planetary recession struck.

BofA Securities expects the bluechip scale to adjacent astatine 19,500 points adjacent year, portion continuing to beryllium volatile and commercialized betwixt 17,000 and 20,000 levels for the year.

The Nifty 50 scale is up somewhat much than 7% astatine 18,584 truthful acold successful 2022, aft 3 consecutive years of double-digit growth. This twelvemonth has besides been volatile with the scale swinging betwixt a debased of 15,183.40 to a grounds precocious of 18,887.60.

BofA Securities advised buying immoderate dips astatine astir 17,000 levels, saying India's economical maturation and equities are little impacted during a recession and retrieve faster aft one.

"Indian markets present overmuch higher returns against the U.S, 12 months station a recession," BofA Securities said, based connected an investigation of the past 3 U.S. recessionary cycles.

Even valuations are improbable to declaration beneath the semipermanent average, said BofA, arsenic home investors could spot $20 cardinal successful inflows from pension, provident, security funds and systematic concern plans.

And with overseas organization investors (FII) ownership of Indian equities astatine a multi-year debased of 18% now, the imaginable for incremental outflows from FIIs is limited, it added.

In fact, determination could beryllium inflows into emerging markets arsenic the U.S. Federal Reserve could beryllium forced to commencement cutting involvement rates aboriginal if determination is simply a pronounced downtrend successful user terms inflation, BofA Securities said.

BofA analysts stay overweight connected sectors similar financials, industrials, staples, utilities, metals and cement, and underweight connected IT, healthcare, user discretionary and autos.

Meanwhile, Samir Arora, laminitis and money manager astatine Helios Capital, expects Indian equity markets to revert towards a semipermanent inclination of 10%-15% returns connected mean successful rupee presumption adjacent year.

Reporting by Nallur Sethuraman successful Bengaluru; Editing by Savio D'Souza

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