Lockdown fallout: ICICIdirect lowers Sensex target for FY22 to 33,500
https://www.moneycontrol.com/news/business/markets/lockdown-fallout-icicidirect-lowers-sensex-target-for-fy22-to-33500-5138011.html COVID-19 is a black swan event with far-reaching implications for businesses worldwide as well as for stock markets. In a recent research note, ICICIdirect revised its target for both Sensex and Nifty50 downwards for the year 2020 as earnings are likely to take a hit. “The Indian economy is no exception with a stringent 21-day lockdown period underway. With almost nil manufacturing activity in this 21-day period and slow ramp-up thereafter amid subdued consumer sentiment, we downgrade our Nifty earnings estimates to the tune of 4% for FY20E, 18% for FY21E and 13% for FY22E,” said the report. “Incorporating the downward revision, we now expect Nifty earnings to grow at a CAGR of 13.2% in FY19-22E versus the expectation of 18.6% CAGR in the past,” it said. The report further added that valuations for Nifty have corrected more than ant