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Will The Market Be Able To Sustain Its Momentum In CY15?
With over 30% return in 2014, the benchmark Sensex is trading at 18 times one-year forward earnings

Vikas Khemani
President and co-head, wholesale capital markets, Edelweiss Capital

We are very bullish and believe that growth will start gaining momentum from the second half of CY15; you will see reforms taking place post-budget. In the second half, there are many triggers to be bullish about: interest rates will fall, credit growth will pick up, the investment cycle will revive and earnings growth will gather pace. We expect a 20% earnings growth for India Inc in CY15. Also, the GST Bill, which is likely to be introduced in Parliament, will be a big boost to the economy. All these macro indicators will start playing out in favour of Indian equities. All the structural levers for growth are in place for India, so I am very confident that in terms of liquidity flows, too, a lot of India-dedicated and global funds will pump in more money into Indian equities. Hence, we expect the Nifty to be between 9,500 and 10,000 by the end of 2015.


Sanjeev Prasad
Senior executive director and co-head, Kotak Institutional Equities

Return may be moderate in 2015 after a large rerating in 2014. We expect 18% growth in net profit for the Sensex in FY16 and 17% for the Nifty. A large chunk (60%) of India’s earnings is linked to global GDP growth, commodity cycles and government policies. From a portfolio standpoint, the investment options seem to be between expensive stocks with strong visibility on earnings and stocks with relatively lower visibility on earnings. We see two risks to India’s medium-term growth story. First, the government’s ability to implement reforms may be constrained by its minority status in the upper house of Parliament and its limited influence over states. Second, financial investors may be reluctant to provide funding to critical investment-related sectors. Indian banks already have too much exposure to several weak infrastructure companies.

The Inside Story

Mukesh Bhavnani, Bharti Airtel

  • Bought 10,000 shares @ Rs 135.36 per share
  • Holds 0.01 % stake

Ashok Kumar Jain, Dabur India

  • Bought 36,364 shares @ Rs 94.68 per share
  • Holds 0.015% stake

Ali Gulamali Morani, DB Realty

  • Sold 5,000 shares @ Rs 55.90 per share
  • Holds 0.068% stake*

D N Kohly, Hindalco Industries

  • Bought 31,640 shares @ Rs 118.35 per share
  • Holds 0.02% stake

Sanjeev AGA, Idea Cellular

  • Bought 5,000 shares @ Rs 154.52 per share
  • Holds 0.06% stake

AM Sundar, Snowman Logistics

  • Sold 75,000 shares @ Rs 107.78 per share
  • Holds 0.072% stake

Note: Promoter’s stake in personal capacity. This holding does not include other investment companies and persons acting in concert. Insider trades from December 4-16, 2014.

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