UBS Nifty base case, upside and downside scenarios are 10,500, 11,900, and 8,800 respectively which implies unattractive risk-reward at the current level, even more so if uncertainty rises around the outcome and timing of the election.
A weaker portfolio inflow could put the rupee under pressure, said the UBS report. The rupee needs a larger amount of portfolio inflow to stay afloat compared with 12 months ago.
The global investment bank is positive on Auto Parts, IT services, Oil & Gas, Private Bank, property, and Telecom & Media.
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| Capitalstars financial research pvt.ltd. |
A weaker portfolio inflow could put the rupee under pressure, said the UBS report. The rupee needs a larger amount of portfolio inflow to stay afloat compared with 12 months ago.
Investors should focus more on the individual stocks rather than looking at the index. Top preferred stocks include names like Bank of Baroda, Bharti Airtel, BPCL, Cipla, HDFC Bank, ICICI Bank, ITC, Motherson Sumi, TCS, Titan Company etc. among others.
It has been driven by sharp deterioration in the basic balance from 1.3 percent a year ago to close to zero lately. The widest trade deficit (in January) since 2013 is not helping the cause. “We now think USD-INR could trade around 65 in the next 3 months,” said the report.
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