The value of rupee is expected to come down to 81 per dollar
American brokerage company BofA Securities said in its report, by the end of this year, the Nifty can fall by 6 percent and go up to 14,500 points.
There is big news for those investing in the stock market. The Indian stock market can go to its low level in August or September this year. After that it is expected to improve. In such a situation, the National Stock Exchange (NSE) based on 50 shares nifty ,Nifty) can go up to 14,500 points with a further fall of 6 percent by the end of this year. American brokerage company BofA Securities has expressed this estimate in its report. He said that the positive effect of stocking cheap goods with the companies is now over. Due to this there has been a cut in the earnings of the companies. In addition, the price of crude oil (Crude Oil Price) and weak valuation of some Nifty stocks are some of the reasons, which will bring down the market.
The brokerage company had earlier predicted the Nifty to reach a record level of 19,100 points by the end of this year. However, in view of the sell-off, the company reduced its estimate to 17,000 marks later.
These factors are on the market risk
Nifty has declined during the last few weeks due to the increase in global level policy rates and higher commodity prices due to the Russia-Ukraine War. On Wednesday, it closed down 1.44 percent at 15,413.30 points.
Analysts at the brokerage said, “Despite the recent correction, we remain cautious on the markets. In addition to slowing economic growth, including tighter monetary policies globally and fears of a recession in the US, we are seeing other risks as well.
Other risks include the possibility of a fall in earnings of up to 4 per cent, he said. There is also a risk of a surge in crude oil prices, whose price can reach $ 150 per barrel.
Rupee may fall up to Rs 81 per dollar
Meanwhile, the brokerage company said that the exchange rate of the rupee against the US currency may fall to Rs 81 per dollar by the end of the year 2022.
However, analysts also said that the Reserve Bank of India has forex reserves of about $ 600 billion, which could prove to be important in mitigating these risks.