The brokerage, which previously had a target of 31,000, cited global growth concerns for revision in the target.
Deutsche Bank cut its December Sensex target to 28,000, implying an eight per cent upside from current levels.
The brokerage, which previously had a target of 31,000, cited global growth concerns for the revision in the target.
"…Financial market volatility will continue till commodity prices and emerging market currencies stabilise. Till then, the environment for foreign institutional investors (FIIs) in emerging markets will stay muted and risk premia will widen. The recent sharp sell-off in equity markets, including India's, is a reflection of rising fragilities of emerging markets," said Deutsche Bank analysts Abhay Laijawala and Abhishek Saraf on Friday.
The brokerage is recommending investors to "stay defensive till emerging markets' currencies stabilise". Its picks are Tech Mahindra, Tata Consultancy Services, and Infosys, given expectations of a US recovery and a stronger dollar.
It also favours Nestlé, Godrej Consumer, and Zee, on the back of an improvement in urban consumption. The investment bank says JSW Energy and NTPC are safe, and offer reasonable earnings growth with high certainty.
Deutsche Bank has pegged Sensex earnings per share growth at 14 per cent for FY16, and 18 per cent for FY17.
At its target price of 28,000, Sensex will be valued at 15 times its FY17 earnings estimate.
