UBS raises Nifty target to 9,600 for 2015 from 2014 target of 8,000

Union Bank of Switzerland (UBS) has raised National Stock Exchange (NSE) Nifty's target to 9,600 for 2015 from its 2014 target of 8,000 and said that macroeconomic data and earnings should lift markets.

Consensus earnings growth estimates of 15 per cent for FY16 and FY17 will be met, UBS said in a note.

The global financial services company expects lower rates and reforms to drive growth recovery.

UBS economists see 10-year bond yield at 6.5 per cent by end-FY16, down from 8.2 per cent currently.

UBS remains 'overweight' on banks, oil and gas, power, telecom and media stocks. It has upgraded consumer discretionary and pharmaceuticals to "neutral" from "underweight"

However, the banking services company has downgraded small and mid-caps to 'neutral' from 'overweight' and has cut IT services to 'underweight' from 'neutral'.

(Reuters)