 "Elections will be wild card for India this year, says Nomura")
Japanese investment bank and brokerage firm Nomura is out with its big global economic outlook for 2014. For the Indian market, the brokerage firm is bullish and has set a Sensex target of 24700for December-end.
In an interview to CNBC-TV18,Prabhat Awasthi,Head-Equity Research & MD, Nomura said that elections will be a wild card for India this year.
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Nomura sees market returns of 17 percent, but cautions of potential post-poll volatility.
“We expect the market’s macro ecosystem this year to improve on both the inflation and rates fronts,“Awasthi said,expressing confidence over the Indian economy.
Nomura believes thatslow growth will rein in the current account deficit against the backdrop of a rebounding global economy.
However, Nomura expects growth to remain a drag this year, held down by weak investment and muted consumption.
The brokerage firm is bullish on technology, pharmaceuticals, banking, oil & gas and asset owners stocks. It remain negative on the consumer, cement, capital goods, metals and telecomsectors. Nomura’s top stock picks for the year are ICICI Bank, Axis Bank, HCL Technologies and Gail India.