Outlook 2020: Here's how global brokerages expect Indian markets to perform this year

SUMMARY

The benchmark indices Sensex and Nifty ended 2019 on a strong note, with the two gaining 14 percent and 12 percent, respectively, even as the growth is at a multi-year low. Going ahead, government measures announced recently like corporate tax cuts help the indices. Globally, US-China trade war crude oil prices and the dollar will be other key monitorable in 2020. Here's what brokerages expect from Indian markets in 2020:

By CNBC-TV18Jan 1, 2020 10:18:31 AM IST (Published)

Markets in 2019: Sensex rose 14 percent in 2019, while Nifty50 was up 12 percent. However, broader markets continue to underperform the benchmark indices with the S&P Nifty Mid-cap index and S&P BSE Small-Cap index falling 4 percent and 8 percent, respectively, for the year. The rally was mainly led by gains in realty, financials, and IT space. However, media, metal, and auto indices slacked.

UBS: The brokerage expects recovery in growth to start from December quarter. FY21 GDP growth seen at 6.5 percent and FY22 at 6.7 percent.

Morgan Stanley: The brokerage has set December 2020 Sensex target at 45,000 and earnings growth at 23 percent in FY21. Morgan Stanley's focus list for 2020 includes Bajaj Auto, M&M, Maruti Suzuki, Motherson Sumi, and Indian Hotels, among others.

Credit Suisse: The brokerage believes CY20 market performance will be affected by how FY22 EPS moves. It has an overweight stance on SBI, ICICI Bank, ICICI Life, Bharti Airtel, Power Grid and Tata Steel.

Citi: The brokerage's December 2020 Nifty target is 12,700. HCL Tech, HDFC Bank and ICICI Bank are amongst top picks in large-cap space and ACC, Apollo Hospitals, Biocon in mid-caps.