The outlook for Indian equities is looking "increasingly bleak" given India's "perilous" external account position and a weak rupee that reflects "rampant" fiscal profligacy, Nomura says in a report.
The brokerage's sets new 12 month target on India's benchmark index at 17,000 points, with 5-10 % downside risk in the near term.
Nomura's target implies a 1.8 % fall from Monday's Sensex closing level of 17,318.81 points.
Nomura's sector allocation has become more defensive, with underweight calls on banks, real estate, and telecoms, report says.
Bank is overweight on the oil & gas and metals, and also overweight on consumers despite valuation concerns, to reflect defensive stance.
Nomura's target implies a 1.8 % fall from Monday's Sensex closing level of 17,318.81 points.
Nomura's sector allocation has become more defensive, with underweight calls on banks, real estate, and telecoms, report says.
Bank is overweight on the oil & gas and metals, and also overweight on consumers despite valuation concerns, to reflect defensive stance.
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