Sachin P Mampatta | Mumbai
October 16, 2013 Last Updated at 13:25 IST
UBS says 6,800 on Nifty possible post elections
Drop below 5,500 level good opportunity to buyThe National Stock Exchange’s benchmark index, the Nifty, could potentially reach 6,800 levels after the elections on the back of growth in earnings.
Also any drop below the 5,500 level could be an opportunity to buy, according to an India market strategy report from international financial services firm UBS Securities India.
“Our view remains that any new government is more likely to take steps to course correct the economy. Nifty could potentially reach 6800…post elections…assuming 15% earnings growth in FY15. But near-term volatility may increase as we approach elections. We view the risk-reward to buy as attractive below Nifty 5500 levels,” said the report dated 11th October and authored by analyst Gautam Chhaochharia and associate analyst Sanjena Dadawala.
Social media may also have a bearing on the elections this time around, according to the report. It noted that broadband penetration has increased from 0.65% or 7.7 million people in 2009 to 1.2% or 15 million. Also total internet penetration is up from 60 million people to 160 million.
“A survey conducted in the first half of the year has concluded that social media may affect the vote in as many as 160 constituencies (out of 543) – on the basis that internet users in these constituencies are larger than the margin of victory in the last elections,” said the report.
http://www.business-standard.com/article/markets/ubs-says-6-800-on-nifty-possible-post-elections-113101600285_1.html