Stocks’Up­side Capped from the Cur­rent Lev­els: CLSA

The Economic Times - - Companies: Pursuit Of Profit -

Mum­bai: Stock mar­ket’s up­side is capped from cur­rent lev­els as there are hardly any mean­ing­ful pos­i­tivetrig­gersinthe­n­eart­erm, said CLSA. Con­tin­ued de­lay in pas­sage of the GST bill, soft­en­ing of high-fre­quency in­di­ca­tors and cor­po­rate earn­ings growth, which is un­likely to play out be­fore Oc­to­ber-Novem­ber, are po­ten­tialsen­ti­ment­damp­en­ers,the bro­ker­age said.

In­dia’s premium val­u­a­tion is a cause for concern. The Nifty is cur­rently trad­ing at 16.1 times its one-year for­ward earn­ings, a premium of 11% to its 10-year av­er­age, while earn­ings down­grades to the con­sen­sus ex­pec­ta­tion of 23% growth for fis­cal year 2017 ap­pear likely, said CLSA.

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