BSE Sensex to rise to 21,700 by year-end: Nomura
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)
- Tweet this
- Share this
- Digg this
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- Indian economy warms in after-glow of Modi's triumph
- In India, rice replaces ice in bucket challenge
- Tennis - Dream run over for Bellis as big guns advance
- UPDATE 2-Tragedy-hit Malaysia Airlines to lose 6,000 jobs in bold revamp
India's economy grew by a faster-than-expected 5.7 percent in the three months through June, its fastest pace in two-and-a- half years, helped by a rebound in manufacturing and mining sectors, government data showed on Friday. Full Article
In race for bigger margins, drug makers willing to lose the India "advantage". Full Article