BSE Sensex to rise to 21,700 by year-end: Nomura

Mon Jan 14, 2013 4:24pm IST

A traffic-sign near the stock exchange building (right) reflects the sharp increase in the stock index in Mumbai January 2, 2004. REUTERS/Punit Paranjpe/Files

A traffic-sign near the stock exchange building (right) reflects the sharp increase in the stock index in Mumbai January 2, 2004.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

Stocks

   

Reuters Market Eye - Nomura expects the Sensex to touch 21,700 by the end of 2013. The investment bank says positives include potential rate cuts, easier domestic liquidity and reform momentum.

However, Nomura warns risks include "a broken" capex cycle, weak government finances, and a poor external account.

Nomura sees downside risks to consensus forecast of 13 percent earnings growth for fiscal 2014, adding it expects at most a 10 percent growth.

The Sensex is trading at 13.8 times, or a 10 percent discount to its three-year average, Nomura adds, noting that "is about right given the market's adverse macroeconomic ecosystem and high systemic imbalances - slow growth, high twin deficits and a weak rupee".

Nomura picks ICICI Bank, ITC Ltd (ITC.NS) , Mahindra & Mahindra Ltd (MAHM.NS), Dr Reddy's Laboratories Ltd (REDY.NS), and Zee Entertainment Enterprises Ltd (ZEE.NS) as its top picks for the year.

By sector, Nomura is "overweight" on banks, consumer, media, property, pharma, IT services, oil and gas, and utilities. * Nomura is "underweight" on autos, infrastructure and construction, capital goods, metals and mining, and telecoms.

(Reporting by Manoj Dharra)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Factory Activity

Factory Activity

Factories expand at slowest pace this year in September  Full Article 

Videocon d2h IPO

Videocon d2h IPO

Videocon d2h files for up to $113 million IPOs  Full Article 

Asian Economy

Asian Economy

Asian factories slow in Sept, push inflation ever lower  Full Article 

EBay Divests PayPal

EBay Divests PayPal

EBay follows Icahn's advice, plans PayPal spinoff in 2015  Full Article 

New 'Windows'

New 'Windows'

Microsoft names next operating system 'Windows 10'.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage