Global stock markets saw a sharp downturn earlier this year, but Dalal Street has begun to show strong resilience recently. In this backdrop, PL Capital increased its Nifty 50 target to 27,019, while cautioning that the prolonged West Asia crisis and impact of the mega El Nino year can play a "spoil sport".
The Nifty target set by the domestic brokerage implies an upside potential of more than 12% from the benchmark index's closing level of 24,078 on Wednesday. However, it cautioned that Dalal Street is now passing through a phase filled with uncertainty, and markets are likely to remain highly volatile. With resumption of hostilities in West Asia and rising probability of EL Nino, PL Capital remains cautiously optimistic with a stock specific approach.
