UBS remains “tactically bullish” on the Indian equity markets for 2013, Gautam Chhaochharia, deputy head of India Research at UBS, told NDTV Profit today.
The global investment bank expects the 50-share NSE Nifty to trade in the 5,500-6,350 range in the first half of the current year, Mr Chhaochharia said, adding that the long-term consumption story is intact but should be underweight for 2013.
While it is overweight on the banking, infrastructure, media, midcap and real estate sectors, it is underweight on autos, cement, consumer staples, and IT services.
The bank expects a gradual and mild economic recovery of the Indian economy and has a positive outlook. An easing rate cycle and earnings upgrade are the next big triggers, Mr Chhaochharia said, adding that a further re-rating depends on government action.