Here's why Nomura raised its Nifty target for March 2020 to 12,900

The brokerage has re-rated the Indian market, saying the softening of bond yields and steps taken to tackle the crisis at NBFCs will help valuations

Nomura has raised its Nifty target for March 2020 to 12,900, implying an upside of nearly 12 per cent from its current levels. 

The brokerage has re-rated the Indian market, saying the softening of bond yields and steps taken to tackle the crisis at non-banking financial companies (NBFCs) will help valuations. 

“We expect the market to get valuation support from lower bond yields. Further, steps taken by the government and the RBI to infuse liquidity into NBFCs should allay concerns on escalation and a deeper economic slowdown. Hence, we increase our target multiple to 17 times (from 16) on FY21