ICICIdirect sets Nifty target at 17,500, 58,300 for Sensex

Mumbai: ICICIdirect has set a target of 17,500 on the Nifty and 58,300 on the Sensex. This implies a gain of 10.6% over Nifty's Monday closing of 15,814.70. The brokerage said the domestic stock market is showing resilience and scaling new highs amid encouraging corporate earnings and strong domestic macroeconomics. The brokerage expects broad based participation to continue with mid- and small-caps leading the gains.

ICICIdirect said strong earnings, led by upswing in key commodities and strong underlying demand prospects, have set the stage for further upside in the market.

“GST (Goods and Services Tax) collection at around Rs 1.02 lakh crore for May is testimony to robust domestic macroeconomics. Going forward, with the peak of the Covid resurgence behind us, increasing pace of vaccination domestically and calibrated state specific unlocking under way, we expect economic activity to bounce back sharply in 9MFY22 (April to September period of FY22),” said ICICIdirect.


Further, a step up in capital expenditure by the government will create a multiplier effect for the economy.

ICICIdirect sees information technology and pharmaceutical sectors as structural plays in the market. The brokerage also noted that foreign portfolio investors have turned net buyers in June with monthly inflow so far at $2.1 billion versus selling in April and May.

ICICIdirect has projected Nifty earnings to grow at a compounded annual growth rate of 24.2% in the FY21-FY23 period.

The brokerage said double-digit earnings growth over this period will be led by the automobile sector on the back of base effect, capital goods companies and the banking, financial services and insurance sector.