Ambit Capital said that fair value for Nifty is 20,900 by FY24 end, considering March-24 earning yield-bond yield (EYBY) gap. “Nifty fair valuation rises to 20,900 using 7.1 per cent G-Sec yield and March-24 EPS of ₹940 (vs consensus’ ₹991).” it said. Challenges for Reliance, metal“Tech earnings” remain with expectation of revenue growth normalisation to pre-Covid period. Ambit Capital’s mid- and small-cap allocations are 12 per cent/5 per cent and cash allocation is 5.2 per cent. “While we retain overweight on banks, we recommend reducing weight as valuations aren’t as cheap as in May-22 and book yield bond yield differential model suggests muted one-year returns,” it advised.

Source: The Hindu May 31, 2023 03:51 UTC