NEW DELHI: Deutsche Bank has cut the year-end target for S&P BSE Sensex to 28,000 from 31,000 earlier citing concerns over global growth. “A combination of commodity deflation, sharp compression in global trade, deep depreciation in emerging market currencies and dollarisation of emerging market debt have raised the risks of an emerging market contagion,” it said, adding that cross-border loans and debt securities to EM at $5.7 trillion could lead to fast-paced tightening of credit.

The global investment bank, however, said India looks relatively better placed due to government reforms and low levels of external debt relative to nominal its GDP. It has added long US dollar proxies, urban consumption, public investments and utilities, with Tech Mahindra, TCS, Infosys, Nestle India, Godrej Consumer and Zee Entertainment topping its list of preferred picks.

Deutsche Bank also likes IRB Infra, Shree Cement Cummins India, JSW Energy and NTPC.Earlier, Macquarie, Barclays and Ambit Capital had slashed Sensex targets, citing delay in earnings recovery.Barclays had reduced its Nifty target from 10,219 to 9,642, saying June quarter earnings performance was weak. It noted that operating performance was better than topline, but added that earnings are likely to bounce-back in second half of this fiscal in several sectors.Macquarie cut its December Nifty target from 9,600 to 8,700 to factor in lower earnings. It expects earnings weakness to continue in the September quarter.

Goldman Sachs continues to retain its ‘overweight’ call on India. The brokerage has a 12-month Nifty target of 9,300. Citi too has retained its positive outlook on Indian equities. The global investment bank expects the Sensex to hit 32,200 by December end. Citi expects Sensex to hit 35,000 by June 2016.

Source:http://economictimes.indiatimes.com/markets/stocks/news/deutsche-bank-cuts-sensex-target-to-28000-from-31000/articleshow/48952347.cms