New Delhi: Global investment bank, UBS has expressed its confidence in the Indian equity markets for the year 2015 recommending a target of 9,600 on the Nifty by end-2015, which presents an upside of nearly 15 per cent from current levels.
Consensus earnings growth estimates of 15 per cent for FY16 and FY17 will be met, UBS says in a note.
Nifty target of 9,600 is based on top-down expectation of 15 per cent earnings growth in FY16E and 18 per cent growth in FY17E (on a base of 13% in FY15E), explains UBS.
UBS expects lower rates and reforms to drive growth recovery.
UBS economists see 10-year bond yield at 6.5 pct by end-FY16, down from 8.2 pct currently.
UBS remains "overweight" on banks, oil and gas, power, telecom and media stocks. It has upgraded consumer discretionary and pharmaceuticals to "neutral" from "underweight"
UBS downgrades small- and mid-caps to "neutral" from "overweight" and cuts IT services to "underweight" from "neutral".
(With Agency inputs)
