BofA Securities cuts Nifty earnings and trims India GDP forecast
Business
BofA Securities just lowered its earnings growth outlook for Nifty 50 companies from 14% to 8.5% for FY27, mainly because of rising crude oil prices and worries about stagflation linked to the ongoing Iran conflict.
Crude oil expected at $92.5/barrel
With oil now expected at $92.5 a barrel, BofA also trimmed India's GDP growth forecast for FY27 from 7.4% to 6.5%.
If things get worse, they warn GDP could drop to just 3%, with no earnings growth at all.
Still, BofA says if tensions ease, markets could bounce back, setting a hopeful end of December Nifty target of 26,200 (up from today's level of around 22,663).
They're now favoring big private and state-run banks over sectors like real estate or autos, which they see as riskier right now.