NIFTY at 9600 by 2015 End: UBS

 * UBS, the global research and brokerage firm, expects the NIFTY to touch 9600 by 2015 end, a rise of abaout 15% cent from the current levels.

* In a (2014) November 11 report, ‘India Market Strategy Outlook 2015: Bull market to continue’, authors mR. Gautam Chhaochharia and mR. Sanjena Dadawala suggest the economic growth recovery underway will likely sustain current valuations, especially as it starts manifesting in both macro (economic growth, inflation) and micro (corporate earnings) data points.

“ Based on  top-down 15%  / 18%  growth forecasts for FY16 / FY17 and likely premium valuations of around 16x one-year forward PE, our Nifty target for end-2015 is 9,600,” the report says.

* Supported by both macro (fiscal / monetary) and micro (food / wages) policies, UBS expects consumer price inflation (CPI) to moderate to 5.7% in January 2016, lower than the Reserve Bank of India’s (RBI’s) target of 6%.

* UBS has downgraded small - and mid-caps to “neutral” from “overweight” stance and cut IT (information technology) services to “underweight” from “neutral” besides turning neutral on consumer discretionary and pharmaceuticals sectors (from UW).

* UBS's most preferred stocks are Asian Paints, Bharti Airtel, HDFC Bank, ICICI Bank, LIC Housing Finance, Maruti Suzuki India, Multi Commodity Exchange of India (MCX), Oil and Natural Gas Corporation (ONGC), Power Grid, and Reliance Industries.

“UBS's least prefer Adani Power, Cipla, Hero MotoCorp, Hindustan Unilever, Infosys, Jubilant FoodWorks, and United Spirits,


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