Stocks’Upside Capped from the Current Levels: CLSA
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.