Please Share:: 
Market outlook
The market has rebounded by approximately 8% from recent lows of 7540 to 8150 currently. This was
led by the positive surprise from the RBI that announced a repo rate cut of 50 bps to 6.75%. A decline in
global commodities aiding government’s fiscal position and corporate P/Ls on a front loaded basis would
lead to a pick-up in consumer demand and kick in investment cycle in the latter half. This would benefit
both operating as well as financial leverage of corporates and would reap positive earnings.
Though volatility is expected to prevail on the global front as central banks across the globe recalibrate
liquidity levels, India, with its higher growth rate and least political instability will continue to remain in a
sweet spot among other EMs and continue to attract global investors.
We expect Sensex earnings to grow 13.2% 18.5% in FY16E and FY17E to | 1539 and | 1838,
respectively. We assign a P/E of 16.5x on FY17E EPS to arrive at a fair value of 30300 by September 2016
with the Nifty reaching 9100. Hence, in our Diwali 2015 strategy, we recommend investing into quality
names that have reasonable growth visibility coupled with strong balance sheets.
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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details ��
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