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CLSA raises March 2018 Nifty50 target to 10,000

The global brokerage is bullish on flows into Indian equity markets, both from domestic institutional investors and foreign investors.

, ET Bureau|
Updated: Apr 04, 2017, 12.55 PM IST
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Mumbai: CLSA has raised its Nifty target to 10000 points by March 2018 from 9700 points earlier, saying that limited net equity supply combined with large investor inflows should keep market valuation elevated.

The global brokerage is bullish on flows into Indian equity markets, both from domestic institutional investors and foreign investors.

The brokerage said inflows into domestic equity mutual funds have been steady since May 2014 at $1.1 billion a month and with 40% of this coming through systematic investment plans, the flows are sticky.

Now, the domestic equity investors are diversifying beyond equity mutual funds with employee provident fund and national pension scheme adding sustainable flow of $2 billion- $3 billion, added CLSA. The brokerage expects this number to rise going forward.

Not just domestic money, foreign flows should also remain conducive, the brokerage said.

"FII flows have started 2017 on a positive note with $6 billion of net inflows YTD (year to date). India’s relative performance has also improved which augurs well for further flows," said CLSA.

The brokerage said share buybacks by companies are likely to continue in the new financial year, and if the equity supply remains moderate, valuations are likely to sustain as well.

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