Target prices of 22 Nifty stocks less than those in 2015
Demonetisation has impacted the target prices of banking stocks
Pavan Burugula The slowdown in corporate earnings has impacted target prices of Nifty stocks adversely. According to data compiled from Bloomberg, the current target price of 22 Nifty companies is less than what it was a year ago.
The trend is in-line with the lower than expected earnings in the first three quarters of the current calendar and recent correction in the broader markets. Information technology and pharma stocks, considered as defensives during any volatility, have seen sharp downward revisions in their target prices. Demonetisation has impacted the target prices of banking stocks. Interestingly, brokerages seem to more bullish on metals and commodity stocks compared to last year. Hindalco, GAIL and Bharat Petroleum are among the few stock which have seen a positive change.