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

Iron Ore Mining

REUTERS SHOWCASE

Tracking Markets

Tracking Markets

Sensex, Nifty surge to record high; Sesa gains  Full Article 

Rupee Falls

Rupee Falls

Rupee sees worst single-day fall in over a month  Full Article 

TCS-Mitsubishi

TCS-Mitsubishi

TCS, Mitsubishi to form software services company  Full Article 

Deal Talk

Deal Talk

Hero Motor to invest $40 million in Bangladesh joint-venture   Full Article 

Telecom Sector

Telecom Sector

RIL telecoms unit in tower lease pact with ATC  Full Article 

Japanese Economy

Japanese Economy

Japan exports growth slows sharply, keeps pressure on BOJ to act  Full Article 

A Tough Sell

A Tough Sell

Insurance against a China financial crisis  Full Article 

Tyre Debris

Tyre Debris

Bangalore-bound Malaysia Airlines plane turns back after tyre burst on takeoff  Full Article 

Digital Currency

Digital Currency

At Mt. Gox bitcoin hub, 'geek' CEO sought both control and escape  Full Article 

Reuters India Mobile

Reuters India Mobile

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