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Investment bank UBS on Friday slashed the year-end target on the benchmark Nifty to 9,200 from 9,600 earlier, due to a poor earnings outlook.
The 50-share index on Friday ended at 8,606.
"We cut our Nifty target for Dec-2015 to 9,200, to reflect earnings cuts. We now use a higher multiple of 17x one-year forward PE (vs. 16x earlier) as we expect current multiples to likely sustain. The revised target also reflects our view of the growth recovery being slower than expected, as is playing out in quarterly corporate results. It does reflect possibility of near-term consolidation and even profit-taking, given limited absolute upside from current levels near-term," said UBS in a report.
