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.

EDITORIAL OF THE DAY

  • Public musn’t pay for domestic servants for our diplomats

    Nothing seems to have changed in the year and half since the fur that flew thick and fast over the case of diplomat Debjani Khobragade and her maid Sa

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

Economic integration in east Asia

As trade agreements within a global framework have become increasingly ...

Rajgopal Nidamboor

Up the ante of your conscious existence

It sounds cryptic, but is not as complex as it ...

Gautam Gupta

The ‘fake’ issue needs to be taken seriously

E-commerce players are witnessing unbelievable growth globally. Competition is increasing ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture