Market Outlook - December 8, 2012 - Microsec

Market and key developments were in line with our expectations. Chinese Industrial numbers, indicator to metal stocks and India's Inflation, IIP numbers, FOMC are key events. Indian market may remain strong as the structural picture of the economy tends to improve after reforms initiatives.

Current Bloomberg consensus earnings estimates for Nifty in FY14 at~ 427 may be re-rated 6-8 percent, i.e., 453-461. We expect Nifty to gradually touch 15 times on revised FY14E, keeping the positive sentiments and expected improved fundamentals across sectors, which gives a target of 6795 based on the lower FY14(E) EPS target.

BUY IL&FS Transportation, Pidilite, Cera Ceramics, Esab India, Apollo Tyres, Madras Cement, Aditya Birla Nuvo, Blue Star, Sesa Goa (with 20-30% targets in 1 year) for investment. In the large cap, L&T, SBI, Reliance Ind, Bajaj Auto may outperform. IDBI, India Cement, Chambal Fertilisers for trading with 8-10% expected gains 2-3 weeks.

Source : Equity Bulls

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