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.

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