UBS sees Nifty at 6,900 on positive poll outcome

Mumbai: Foreign brokerage UBS Securities sated that it expects the Nifty at 6,900 if the markets start believing in a positive election outcome and that sees a 15 per cent earnings growth in FY15.

‘Markets have not priced in a positive election outcome yet. Investors indicate that markets are hoping for a Modi-led government,’ stated UBS in a report.

A more euphoric sentiment among investors could imply higher multiples. "Investors suggest that opinion polls have aided expectations around increased probability of a Modi government," added the brokerage. Current valuations for Nifty at 14 times of one year forward PE imply that a positive election outcome may not yet be priced in.