Mumbai: Bank of America Securities said it continues to stay cautious on richly-valued Indian equities following the reciprocal tariffs by the US on all its trading partners. The brokerage said it expects less than 7% returns for the Nifty in 2025 and losses in small and mid-cap stocks.
The brokerage said while the direct impact of tariffs on India is limited, it could have a cascading impact on domestic manufacturers, delayed capex decisions and lower credit growth.
"We see these factors having an impact on currencies and potential for risk-off scenario/ flight away from equities," said BofA Sec said in a client note.
It prefers domestic cyclical industries such as financials, real estate, and auto over globally-linked industries such as IT, metals, energy and pharma.
The brokerage said while the direct impact of tariffs on India is limited, it could have a cascading impact on domestic manufacturers, delayed capex decisions and lower credit growth.
"We see these factors having an impact on currencies and potential for risk-off scenario/ flight away from equities," said BofA Sec said in a client note.
It prefers domestic cyclical industries such as financials, real estate, and auto over globally-linked industries such as IT, metals, energy and pharma.
You may also like
King Charles giggles as he meets Italian PM Giorgia Meloni in lively get-together
Tottenham 'make contact with Premier League manager' over replacing Ange Postecoglou
Adah Sharma on playing Devi in her next film: 'My goal is to keep it as realistic as possible'
Telangana excels in first Panchayat Advancement Index data: Union govt
Man guilty of murdering mum with zombie knife in front of daughter, 3, at Notting Hill Carnival
