Nomura raises Sensex target, says market ignoring growth

Global brokerage Nomura has raised its target for the Bombay Stock Exchange index Sensex to 30,310 by end of August 2015.

The new target is a 17 per cent gain from the index's closing level on Tuesday.

"The cyclical pick-up in growth is being ignored by the market obsessed with bold policy and reform moves by the new government," the brokerage said in its report on Wednesday.

Nomura highlighted Axis Bank, ICICI Bank, State Bank of India, GAIL India, Coal India and Tata Motors among its top picks.

Separately, UBS also maintained its 12-month target of 8,000 on the National Stock Exchange Nifty, saying concerns about government inaction are misplaced.

"We believe investors will be willing to give a premium for growth potential, especially as cyclical economic recovery starts manifesting in data points," the brokerage said.

(Reuters)