Market view

UBS Head of India Research Gautam Chhaochharia

UBS Head of India Research Gautam Chhaochharia

UBS Head of India Research Gautam Chhaochharia

India is still a favored market?

Following meetings with nearly 100 investors in the US and Asia last month, we noticed some trimming of overweight positioning, but nearly all foreign investors remain positive on the outlook for India. Major concerns focus on the pace of reform and tax issues but the interest rate cycle has the potential to be a positive catalyst.

UBS forecasts the Nifty 50 to reach 9,200 at December 2015 (see Nifty Dec-2015 target cut to 9,200 from 9,600); 100 basis points rates cut in the next 12 months; and favors banks, including private, SOEs and non-bank financials.