BofA cuts Nifty target to 17,500, cites rupee depreciation, global slowdown

In August, BofA had revised its Nifty target upwards twice citing reduction in macro uncertainty

BofA Securities has revised lower its Nifty target from 18,500 to 17,500 citing “weakening macro, higher crude, rupee depreciation, global slowdown.”

“In the near term, higher crude, slowing global growth along with depreciating currency could create a downward spiral of macro risks - ballooning current account deficit and overshooting fiscal deficit. We see 40 basis points upside risk to FY23's budgeted fiscal deficit estimate of 6.4 per cent. We see CAD too at 3 per cent of GDP vs 2.5 per cent threshold driven by uncomfortably high trade deficit – 16 per cent export and 46 per cent import growth