According to BofA Global Research, India’s blue-chip Nifty 50 index will underperform other developing markets and debt this year, posting its worst performance in seven years.
In anticipation of the index’s volatility and expectation that it will fluctuate between 16,000 and 18,000 levels for the year, BOFA lowered its year-end target for the Nifty 50 by 8.3% to 18,000 points.
The Nifty index remained in the sell zone after crossing into 2023. The Nifty 50 index has lost more than 6.25 percent of its value year to date, while in the past month, it has dropped from levels around 17,825 to 17,055, losing almost 4.33 percent of its value. The 50-stock index has decreased by around 3.75 percent during the last six months, going from about 17,720 to about 17,055. The index has fluctuated between 17,120 and 17,055 during the past year and has produced zero returns.
The 30-stock Sensex index has lost about 3,250 points since the beginning of the year, or over 5.25 percent, falling from levels of 61,165 to 57,935. The Sensex has dropped from a level of about 60,675 to a level of 57,935 in the past month, dropping over 2,725 points during this time. The Sensex dropped by 2.55 percent in the previous six months, from roughly 59,450 to 57,935. Yet, during the past year, the Sensex has returned more than 1.10 percent, outperforming the Nifty 50 index.
Similar to this, the Nifty Bank index has decreased by almost 2.85% over the past month and by over 8.50% over the course of the year. In the previous six months, it has fallen by more than 4%. In contrast to Nifty and Sensex, it has risen 9.70% in the past year, providing alpha gains.
