Markets seen rising 10% this year

MUMBAI: Foreign brokerages are forecasting around 10% gains for India’s benchmark indices in 2018, betting on a rebound in corporate earnings growth and economic recovery.

On Wednesday, Deutsche Bank set its December Nifty target at 11,500 points, 9.5% higher than the current level.

The bank also said that the implied Sensex target is 37,000 points. A day earlier, CLSA had raised its Nifty target for 2018 to 11,400.

The Nifty rose 0.59% to 10,504.80 on Thursday, while the Sensex closed at 33,969.64. Both indices had gained around 28% in rupee terms in 2017.

The “positivity is premised on the return of economic and earnings growth”, said Abhay Laijawala, head of equity research, Deutsche Bank’s India unit.

According to Deutsche Bank, the Nifty will trade at 16.8 times expected earnings over the next 12 months at the end of December.

That compares to the fiveyear average forward multiple of 15.4 times. BENGALURU: The Dow Jones Industrial Average sailed past the 25,000-mark for the first time on Thursday, while other major indexes rose to new highs after a strong private jobs report added to a bullish sentiment from indications of robust growth in major economies.

The ADP National Employ-

19,899.29 Jan 5, 2017

ment Report showed that US private employers added 250,000 jobs in December, marking the biggest monthly increase since March, and much above the 190,000 job additions forecast by economists polled by

A more comprehensive nonfarm payrolls report on Friday is expected to show the economy added 190,000 jobs in December, down from the 228,000 additions in November.

Jan 4, 2018