Deutsche Bank on Thursday said 2014 could be a
beginning of a new bull market for Indian equities, on the back of a bottoming
out of the economic growth and earnings cycle.
The European bank believes the pace of economic
recovery and timing of the market rally could hinge on the election outcome.
Most key variables influencing the equity market are
at an inflection point — after a long gap — and may result in 2014 heralding
the beginning of a bull market for India. Economic growth has bottomed, the
corporate earnings cycle is seeing a successive quarter of recovery, investment
starts are seeing a glimmer of hope,” said Abhay Laijawala, managing director
and head of research, Deutsche Equities India.
The brokerage expects the benchmark Sensex to touch
24,000 (Nifty imputed target 7,150) by December 2014, about 15 per cent up from
the current levels.
“At our target the Sensex would trade at 15.9 times
FY15 EPS, which (is) a slight premium to past five-year average PE and with
earnings growth of 15 per cent valuations to stay supportive,” said Deutsche
Equities in its India strategy report.
No comments :
Post a Comment