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Global brokerage Nomura has increased its one-year target of benchmark BSE Sensex to 30,310. The target is one of the most bullish for Indian markets and means a 17 per cent upside from current levels.
The brokerage had set a target of 27,200 for December. The target is based on a conservative 12 per cent earnings compound annual growth between FY14 and FY17, Nomura’s analyst team led by Prabhat Awasthi said in an India strategy report.
The Sensex trades at a projected 12-month earnings multiple of 15 times. Nomura expects the market to get re-rated and trade at 16.4 times.
Analysts have turned cautious on the Indian market after a 22 per cent gain in 2014.
Sensex, Nifty up a bit
The benchmark BSE Sensex closed 0.15 per cent higher at 25,919 on Wednesday while the broader Nifty ended up 0.16 per cent at 7,739.
