Nifty seen sniffing at 6,700 before general elections: ICICI Securities

Leading brokerage ICICI Securities sees the Nifty scaling a life-time high of 6,700 in the run-up to the general elections next year after a decisive set of results from the assembly polls on Sunday.

"We see the Nifty sniffing at a new high of 6,300 on the decisive election results in four of the five states that went to polls immediately," ICICI Securities chief executive and managing director Anup Bagchi told PTI in an interview.

"We see resistance at 6,300 in the immediate future but peaking to 6,700 in the run-up to the forthcoming general elections on expectation that the today's decisive victory will be carried forward in the run-up to the general elections."

ICICI Securities is the brokerage arm of the ICICI group which also runs India's largest private sector lender.

"Though this rally may be brief and the market will step back and wait for improving fundamentals again. Still we see that mood is very positive." He also said that the market needs a decisive administration.

So, whichever party secures a clear mandate will help market sentiment, he added.

Many foreign brokerages such as Goldman Sachs, Nomura and CLSA had attributed the recent market rally to the likelihood of a Narendra Modi-led BJP government after the May hustings.

When asked about the retail broking business, he said it is "doing well as the company is adding at around 28,000 new customers a month".

Almost 15 per cent of its total 2.7 million customers are ICICI Bank customers, he added.

Though he refused to share any revenue figures, a company source said the retail broking saw revenue growth of 15 per cent in the first half of this fiscal year.

Even as the market has touched an all-time high, the retail participation has been negligible as the rally has been limited to a few large caps.

Mr Bagchi also said his retail customer base stands at 27 lakh, and is making money as well.

"In the trying times like today, we cannot afford to stick to one or two areas. We need to be present in all areas. And that is precisely what we have been doing."

When asked about the recently launched e-voting facility and what is the rationale for it is, as monetization of this model looks bleak, he said everything cannot be monetized immediately and profit was not the singular driver of this innovation.

"Profits will come at the appropriate time. The e-voting is a service we are offering currently free of charges to our customers," he said.

Late October, ICICI Securities became the first brokerage to launch an e-voting platform, wherein a shareholder can chose to vote online on resolutions of his companies thereby securing wider participation of shareholders in the important decisions of the company.

Stating that this revolutionary platform will empower shareholders by bringing about transparency and greater corporate governance like never before, he said this facility is in line with Sebi's directive to companies to enable e-voting facility also to their shareholders.

"Though it is the most important right of a shareholder, most investors refrain from voting largely due to the inconvenience of either being present, or posting the ballot," Mr Bagchi said.

"We wanted to offer a single platform wherein our customers can e-vote and exercise their rights as shareholders. This, I am certain, will empower our 2.7 million customers and they can participate in important company decisions."