Nifty50 can reach 24,000 in 2024: Jefferies
Jefferies, a global broking firm, forecasts that the Nifty50 index can soar to 24,000 by 2024, thanks to reasonable valuations in the Indian stock market despite a 20% increase last year. Jefferies analyst Mahesh Nandurkar said, "Nifty is now 20x 1-year forward - higher than the past 10-year average, but relative to EM (ex-China) the premium at 67% is only somewhat higher than the historical average." "Also, on a PEG (price/earnings-to-growth) basis, the Indian market appears reasonable," he added.
Jefferies's key picks and overweight stance on sectors
The firm has upped its focus on bank stocks and included Adani Ports in its portfolio. Nandurkar reveals that they are optimistic about the domestic economy and capex, with top picks being major banks (Axis, ICICI), real estate developers (Lodha, Godrej Properties), power (Coal India, JSW Energy), two-wheelers (TVS, Eicher), telecom (Bharti Airtel), and capital goods (Adani Ports, Kajaria). Jefferies's India Model Portfolio is now overweight in financials, telecom, materials, industrials, utilities, and real estate sectors.
Foreign inflows expected to improve in 2024
In 2023, foreign institutional investors (FIIs) invested Rs. 171,107 crore in Dalal Street. Jefferies anticipates increased foreign inflows this year due to factors like a peaking US Dollar, Lok Sabha elections, and India's growing importance in global markets. The firm states, "Structural positives such as the expected political stability, rising investment cycle provide multi-year growth visibility and peaking USD; is an ideal condition for higher foreign flows."
