JPMorgan sees 8-10% potential upside in market by FY15-end

Bharat Iyer, JPMorgan says with Indian equities rallying sharply over the last six months, the brokerage re-visit market valuations based on a range of parameters. “Valuation models based on assets or long-term cash flows - price / book versus return on equity and dividend discount suggest a potential upside of 8-10 percent through to the end of the fiscal year,” he adds.

Also read: Nifty to move much beyond 8000 in Sept series: HDFC Sec

Bhuvnesh Singh, Barclays says returns of Indian equities have largely been driven by earnings growth over the past 15 years.

“In contrast to this long-term trend, this year has witnessed a 27 percent return of which 19 percent is due to multiples expansion. While this could be due to raised expectations on the back of change in India's political leadership, we believe that positive earnings momentum is required to sustain these returns,” he adds.