From 29,300 to 24,900: Nomura slashes Nifty target, says another 5% correction possible! Here’s why
Why it matters: A sharp Nifty dip could reshape Indian equity valuations and investment strategies.
- Nomura cuts the Nifty target from 29,300 to 24,900 and warns of a 5% near‑term correction.
- Geopolitical tensions in the Middle East, especially the Strait of Hormuz blockage, threaten oil and gas supplies, raising inflation and external‑balance concerns for India.
- FIIs have been net sellers for two years, with outflows intensified by valuation worries and the AI trade perception.
- Energy prices near $100/barrel could shave 10‑15% off FY27 corporate earnings, dragging growth to flat‑mid‑single‑digit levels.
- Small & midcap stocks face higher risk in the correction, while overall market valuations are now at the low end of the past four years.
Nomura slashes its Nifty target to 24,900, flagging a potential 5% correction amid Middle‑East oil‑supply risks, slowing FII inflows and high energy prices. Valuations have fallen to the lower end of four‑year ranges, turning a deeper dip into a possible buying opportunity for long‑term investors.
