UBS sees Nifty at 6,900 on positive poll outcome

Tags: Stock Market
Foreign brokerage firm UBS Securities expects the Nifty at 6,900 if the markets start believing in a positive election outcome and said its sees a 15% earnings growth in FY15.

"Markets have not priced in a positive election outcome yet. Investors indicate that markets are hoping for a Modi-led government. Nifty at 6,900 will be a possibility if markets start believing in a positive election outcome, based on 15 times the PE and 15% earnings growth in FY15," UBS said in report.

A more euphoric sentiment among investors could imply higher multiples. Current valuations for Nifty at 14 times of one year forward PE imply that a positive election outcome may not yet be priced in, it said.

"Investors suggest that opinion polls have aided expectations around increased probability of a Modi government," UBS said.

EDITORIAL OF THE DAY

  • Annual reports make sense only if accountable governance is in place

    It’s a sign of a lack of imagination to expect an annual report by a party in power to pull out some impressive performance given the complex nature

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Political rhetoric makes for counter poetry

Poetic flourishes flavour politics. Ghalib and Hafez flowed profusely to ...

Zehra Naqvi

Watch your words, for they can kill

You must’ve heard the ph­rase ‘if looks could kill’. Ever ...

Dharmendra Khandal

Biodiversity day has come and gone. Yet again

Every year on May 22, world celebrates international biodiversity day. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture