On day of Narendra Modi triumph, Deutsche raises BSE Sensex Dec 2014 target to 28,000 pts

Reuters Posted online: Friday, May 16, 2014 at 0000 hrs
Mumbai : Deutsche Bank raised its December 2014 target for India's BSE index to 28,000 points, saying shares were about to enter "a structural bull market" after opposition Bharatiya Janata Party led by its charismatic leader Narendra Modi, and its allies resoundingly won the Lok Sabha elections.

Deutsche said investors should focus on domestic cyclical shares, as well as sectors that could benefit from BJP's efforts to revive the economy, including banks, oil and gas, industrials and infrastructure.

The investment bank called Narendra Modi-led BJP's victory a "historic verdict" that would justify "a re-rating of the Indian equity markets" and said shares were "at the cusp of a structural bull market."

The Deutsche target for BSE Sensex would imply a 10.3 percent upside from the record high of 25,375.63 points hit on Friday.