JP Morgan on Equity Market: The domestic stock market has become 80 percent stronger than the March low. Talking about the year 2020, there has been a growth of 12 percent in the market. But the brokerage house is seeing more rally in the market right now. Global brokerage house JP Morgan believes that by December 2021, the Nifty will be able to touch 15000 levels. However, the current extended price to earnings remained manifold. Prior to this, BNP Paribar has said in its report that in 2021, the Sensex can touch the level of 50500.
Indian economy now recovering rapidly
JPMorgan also said that the Indian economy is not strong enough for upside growth based on already better earnings estimates. JP Morgan said that the Indian economy is now recovering rapidly, but the confidence and income / wages of consumers still remains weak. Monetary policy has already remained as unmodified as it is likely to be. According to JP Morgan, there has been an improvement in the GDP estimates, but the activity is still weak to improve the reading comprehensively.
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Corona vaccine expected in market soon
The brokerage house said that the uncertainty of the US presidential election is over. The Corona vaccine is expected to arrive in the market soon. Central banks are taking measures to bring the economy back on track. As of now, there is also a boom in the domestic market due to global tide. On a 2 year forward basis, MSCI India is higher than the average P / E (near 15-year high), but at an average P / E premium EM.
Source: www.financialexpress.com