Nomura raised BSE Sensex target to 30,310 by end of August 2015. This target implies a 17 per cent gain from Tuesday’s BSE closing level.
“The cyclical pick-up in growth is being ignored by the market obsessed with bold policy and reform moves by the new government,” Nomura says.
Nomura Highlights Axis Bank , ICICI Bank, State Bank of India, GAIL India, Coal India, Tata Motors among top picks.
Separately, UBS maintains its 12-month target of 8,000 on the NSE index saying concerns about government inaction are misplaced.
“We believe investors will be willing to give a premium for growth potential, especially as cyclical economic recovery starts manifesting in data points,” UBS said.