UBS sees Nifty at 6,900 on positive poll outcome

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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Biased board

    THE composition of the Central Board of Film Certification (CBFC), recently reconstituted in the wake of the en bloc resignation of the previous panel

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

‘Fool’-filled method

The gambler’s fallacy, also known as the Monte Carlo fallacy, ...

Zehra Naqvi

Vanity’s downfall

Of all the intriguing, fierce female characters created in literature, ...

Bubbles Sabharwal

Perfection is a myth

I meet a lot of young people in my line ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture