Road ahead for Indian markets in 2018: What top global brokerages forecast

The year 2017 has been a great one for the BSE Sensex and the NSE Nifty. But will the bull run continue in 2018? What will be the key drivers? Here are top global brokerages' forecast

With the S&P BSE Sensex and the NSE Nifty rising over 30% each in 2017, most global brokerages are of the view that the bull run would continue in 2018. They forecast the benchmark Nifty to deliver returns of 10-15% by December 2018 on supportive global economic growth, and gradual improvement in business sentiment. The returns will mostly be in line with growth in corporate earnings in the 2018 calendar year, they suggest.
 
Top global brokerage Goldman Sachs is of the view that the Nifty50 will touch 11,600 by December 2018. It pegs earnings growth at 18% and 17% for CY18 and CY19, respectively.
 
Credit Suisse, on the other hand, is overweight on energy and metals, PSU banks, and IT sectors for the year 2018. However, Bank of America (BofA) warns that large, positive returns for equity indices from the current levels would be possible only if the P/E multiples sustain. Earnings themselves are unlikely to support, it says.
 
Here are top brokerages’ forecast for Indian markets in 2018: