ETMarkets Smart Talk- We have a Nifty50 target of 20,200 by December 2023: Neeraj Chadawar

economictimes.indiatimes.com:

“We foresee NIFTY EPS to post Growth of 16%/13% in FY24/25. We maintained our Dec '23 Nifty target at 20,200 by valuing it at 20x on Dec '24 earnings,” says Neeraj Chadawar, Head — Quantitative Equity Research, Axis Securities. In an interview with ETMarkets, Chadawar said: “In the bull case, we value NIFTY at 22x, translating into a Dec '23 target of 22,200. Our bull case assumption is based on the overall reduction in volatility and the success of a soft landing in the US market” Edited excerpts: We have seen a dream run on D-St with Sensex hitting 67000 and Nifty50 heading towards the 20,000 mark. Is this too good to be true and we are running ahead of fundamentals? The Indian market performance has shown resilience in the last couple of months.

It has outperformed the major global market by healthy margins, thanks to the country's robust and superior outlook vis-à-vis other emerging economies. India now stands tall as the 5th largest market in the world. Only the US, China, Japan, and Hong Kong market are currently ahead of India.

In the last year, while the benchmark index NIFTY 50 and the S&P 500 increased by 19% and 13%, respectively, the emerging market index marginally rose by only 2%. Furthermore, on 20th July '23, NIFTY 50 touched an all-time high level of 19979, which was led by: 1)The revival of the FII flows. 2)Robust economic Growth vs other EM countries.

3)Strong earnings outlook. 4)Robust demand across sectors. 5)The Banking sector's in much better shape.

6)Positive expectations in the Private Capex cycle. 7)Concurrently, for the financial year till date (FYTD), India witnessed cumulative 8)FII flows of $17 Bn. They pulled out $23Bn in FY22/23 out of $37 Bn pumped in FY21.