Ah, this spoiler! Goldman cuts Nifty target to 8,200 after Union Budget

 India's improving macro fundamentals have failed to translate into any recovery in corporate earnings and this trend is likely to continue over the next 12 months, said Goldman Sachs, which has reduced the 12-month target for Nifty50 to 8,200 from 8,500 after the Union Budget.  Indian stock market astrology prediction
"We reaffirm our overweight India stance in the regional context given its strong relative appeal, but Indian equities are likely to offer low-teens returns in dollar terms over the next 12 months, driven largely by a 10/14 per cent earnings growth this year and the next," the Goldman note said.  Share Market Astrology

Based on slightly lower earnings expectations, the global investment bank revised Nifty12-month target to 8,200 from 8,600, which implies roughly 11 per cent returns in rupeeterms and 13 per cent in dollar terms.  Commodity Market Astrology Tips

The India market is currently trading at a 30 per cent premium in the Asian region, which is down from a decade high of over 50 per cent hit a few months back, and this level looks more reasonable. With 10 per cent growth in earnings per share (EPS) for CY16 and 16 times forward multiple, India stacks up in line with the rest of its regional peers on a value vs. growth basis, the report said.   Himanshu Tiwari Astrologer Blog

The recent de-rating suggests that the market is partly resetting its heightened expectations on 'big bang' reforms and growth and looks more 'fair' in the context of the current global environment. Stock Market Trading Tips
Foreign investor positioning has reduced as well, with FIIs having sold $2.4 billion worth of stocks year-to-date (YTD) and  $6 billion since August last year. Sensex Astrology 

Although EM and AEJ funds have been paring down their 'overweight' exposures to India, they still remain overweight by 385 and 595 bps respectively. "The Indian equity marketstill appears vulnerable to 'flow risk' should the concerns about China's growth along with RMB devaluation, and potential contagion risk to other EM assets intensify again," the report said.  
The investment bank said earnings visibility is relatively better in the near-to-medium term. It expects consumption demand and government capex to drive growth. "We like the capital goods space, especially construction & engineering, machinery and cement sectors, which should benefit from government spending on roads and railways and a pickup in infrastructure projects such as Metro rail and low-cost housing," said the Goldman report. 

"Despite a marginally negative impact from higher duties in the Budget, sectors such as auto (M&H CVs, 2W segments), durables and select consumer stocks will continue to do well," it said.    Himanshu Tiwari Astrologer Blog

Refiners and OMCs are the most under-owned sectors, but the investment bank sees an upside given strong demand, refining upcycle and continued improvement in marketing margins.  Personal Numerology