Outlook Of Nifty/bank nifty today
The S&P BSE Sensex rallied over 200 points in morning trade to hit a fresh record high of 30,197.66 after media reports suggested that India could be looking at higher monsoon rains than forecast. Monsoon remains a key risk for Indian market because it delivers about 70 percent of India’s annual rainfall, critical for crops such as rice, cane, corn, cotton and soybeans.
Bank Nifty Outlook:
The public sector bank is expected to ride the economic upswing with sufficient growth capital and strong retail focus. The sale of non-core assets (NSE stake) and a stake in Life & General insurance subsidiaries will remain book accretive. HDFC Securities expects strong 23 percent revenues and robust earnings CAGR over FY16-19E. Based upon 19x FY19E EV/EBITDA we have arrived at a target price of Rs348.