Here’s why HDFC Securities expects Nifty to reach 11,800 by FY19

By: | Published: January 18, 2018 12:57 PM

HDFC Securities has set up a target of 11,800 for the Nifty for FY19. The domestic stock brokerage expects Nifty earnings to grow by 13.5 percent this fiscal year from 10.4 percent a year ago. HDFC Securities expects earnings of Nifty are likely to register a growth of 21.5 percent, in the fiscal year 2019.

HDFC securities, Nifty target, Nifty earnings, Fiscal 2019Expecting an earnings growth of 21.5 percent next fiscal, domestic stock brokerage HDFC Securities has set the Nifty target at 11,800 for fiscal 2019. (Image: Reuters)

HDFC Securities has set up a target of 11,800 for the Nifty for FY19. The domestic stock brokerage expects Nifty earnings to grow by 13.5 percent this fiscal year from 10.4 percent a year ago. HDFC Securities expects earnings of Nifty are likely to register a growth of 21.5 percent, in the fiscal year 2019. “There has been some recovery in earnings in the last two quarters, and we believe it to be 21.5 percent for next fiscal. This will drive Nifty to 11,800 levels for the year to March 2019,” HDFC Securities managing director and chief executive Dhiraj Relli told PTI. The performance would also be supported by a positive domestic economic growth with “GDP likely to grow 7.3 percent in FY19 while GVA is likely to print at 7.1 percent” as GST regime stabilises and the rural economy recovers, PTI quoted Dhiraj Relli as saying. Recovery in private capital expenditure is on the anvil with encouraging manufacturing PMI and factory output numbers, he added.

With the equity indices trading at near all-time high levels, Laurence Balanco, Global Technical Analyst at CLSA said earlier this month that the Nifty could top the 12,000 level by the first half of 2018. In an interview to CNBC TV18, Laurence Balanco had said, that he has a target of 12,000 on the index for H1CY18 and target of 31,000 on the Bank Nifty. “The stop-loss for Nifty is at 10,050 and for Bank Nifty it is at 24,700,” Laurence Balanco told the channel. Interestingly, global brokerage Goldman Sachs had raised its Nifty 2018 target to 11,600 vs 10,900 earlier, while Nomura expects the broader 50-share index to hit 11,880 by December-18.

India’s stock markets extended the record-breaking rally on Thursday with Sensex and Nifty opening at fresh records after hitting new milestones in yesterday’s trade after the Narendra Modi government lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier. BSE Sensex gained as many as 394.88 points to hit a lifetime high of 35,476.7 while NSE Nifty added 98.55 points to mark the record high of 10,887.1 on Thursday. The value buying in the shares of heavyweight companies such as HDFC Bank, ICICI Bank, HDFC, SBI, Axis Bank, ITC, HUL, L&T, Yes Bank and IndusInd Bank led the key equity indices to fresh record highs.

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