After the strong rally since April, there is a limited upside in Indian equities and the markets will end 2021 with a low single-digit gain, an American brokerage said on Wednesday.

Bofa Securities said it is "not as bullish" and gave a target of 15,000 points for the 50- share benchmark Nifty by the end of the newly started year. Markets have rallied by 80 percent since April after a heavy 40 percent correction following the announcement of the COVID-19-related restrictions.

Many analysts, including RBI Governor Shaktikanta Das, have raised concerns over the over-heating in the markets. The benchmark Nifty was trading 0.6 percent up at 14,607 points at 1259 hrs on Wednesday. "We are giving a target of 15,000 on the Nifty, which means there is a limited upside now. We are still bullish, but not as bullish," its India equity strategist Amish Shah told before media.

He mentioned the strong rally witnessed by the markets in the immediate past for its more conservative view on the markets. The brokerage is overweight on sectors including financials, metals and steel, and industrial, he said.

Rupee gains for 2nd consecutive day; settles 12 ps, up at 73.05/USD

Global Gaming firm Nazara Technologies files for IPO

Indian weak, credit growth bottoming out, Says BofA