Nomura sees Nifty at 10,200 in Mar'21; financials to drag earnings

The lockdown's impact on corporate earnings will be worse than seen during the GFC, according to Nomura

The headroom for markets seems to be limited with Nomura expecting the Nifty50 to scale up to 10,200 levels by March 2021 – a modest gain of around 5 per cent from the current levels. While at the global level, equity markets are likely to be supported by strong liquidity, growth stimulus with investors willing to look past near-term earnings declines hoping for a revival in FY22, for India the expectations, according to Nomura, are likely to be relatively muted.

“Equity market valuations are supported by falling yields in India and globally. Given medium-term growth concerns, we think an expansion in