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Bernstein India Nifty Outlook: A brokerage firm Bernstein has maintained its ‘neutral’ stance on the Indian stock market and has set a Nifty target of 26,000 by year-end, implying an upside of approximately 12 per cent from current value. Following the ceasefire between Iran and the US could temporarily ease the pressure on the market, though this relief may be short-lived.
The brokerage suggests that both sides have sustained such significant damage that they may consider de-escalating, even if neither party wishes to be perceived as having conceded defeat.
Breaking It Down
Powered via AIOil sector gets brief respite as conflict eases, but FII capital stays away
According to Bernstein, a pause in the conflict could offer temporary relief to oil-dependent sectors—such as chemicals, aviation, and paints — but also cautions that capital from Foreign Institutional Investors (FIIs) is unlikely to return anytime soon, and crude oil prices are unlikely to fall sharply below the USD 85–USD 90 range.
Which sectors are expected to rebound?
The Bernstein report states that a cessation of the conflict could trigger a short-term rebound in oil-sensitive sectors including chemicals, aviation, paints, and OMCs (Oil Marketing Companies) — though this rally may be limited to just a few days.
Conversely, Bernstein has identified the financial sector — which has come under pressure due to selling by FIIs — as a superior option for long-term investment.
Airlines expected to benefit?
As per the report, a decline in jet fuel prices could benefit airlines, while logistics companies may witness an improvement in their operating margins. Paint and chemical companies, which rely heavily on products derived from crude oil, may also find some relief in their costs. Furthermore, the report suggests that oil marketing companies could see a temporary improvement in their marketing margins — particularly if crude oil prices remain stable without any major fluctuations.
Nifty jumps 889 pts to 24012
Equity benchmark indices Sensex and Nifty closed sharply higher, surging by 4 per cent on Wednesday, April 8, in tandem with an impressive rally in global markets, a steep drop in crude oil prices after the US and Iran announced a two-week ceasefire and other supportive factors.
The 50-share NSE Nifty soared 873.70 points or 3.78 per cent to end at 23,997.35. It rallied 901.5 points or 3.89 per cent to 24,025.15 during intra-day trade.
The sharp gains added nearly Rs 16.59 lakh crore to the total market capitalisation of all BSE-listed companies, taking it up to Rs 446 lakh crore.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
Shahnaz writes on a wide range of topics, including business, social issues, politics, environment, lifestyle and gender. She has previously wrote long-form content covering a wide range of topics, including politics, policies, and more. Additionally, she monitored wires services, social media, and local news outlets for breaking news and relevant stories. Also, she honed her skills in short-form writing, delivering accurate and concise content in a time-bound manner, from breaking news to engaging updates and latest developments on the respective topics. She holds a PG Diploma in Media Studies: Film and Television, with a master’s degree in Journalism and Mass Communication: Research from the University of Calcutta. With over 5 years of experience in journalism, including ground reporting, desk, coordination and copywriting, she excels in both arenas – desk and field. She has covered the West Bengal Assembly Elections 2021 and Lok Sabha Elections 2019 and reported on several news stories from West Bengal. She has extensively covered the TMC beat from 2018 to 2021. Apart from work, Shahnaz likes cooking, watching movies and reading books. She also loves travelling.
