MUMBAI: Expecting the government to shift gears and work towards addressing long-pending issues, Deutsche Bank sees the Sensex to rise nearly 20 per cent in 2015. The brokerage has set a target of 33,000 for the Sensex and expects the Nifty to move up to 9,936.
"In 2015, we see India harnessing its commodity pricing dividend to realign policy towards an investment-driven macroeconomic stabilization, which will not only drive economic growth higher but also reduce inflation and create jobs," the report said.
"In 2015, we see India harnessing its commodity pricing dividend to realign policy towards an investment-driven macroeconomic stabilization, which will not only drive economic growth higher but also reduce inflation and create jobs," the report said.
"Returns on public spending accompanied by the organizational capacity to spend will have a significantly higher multiplier impact on the economy relative to spending on redistribution economics where leakages are extremely high," it added.
At DB's target of 33,000, the Sensex would trade at 18.4x FY16 EPS and 15.5x FY17 EPS, with earnings CAGR of 17.7 per cent over FY15-17. It is overweight on financials, industrials, and materials.
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