Buy with a 1-year investment horizon: UBS Sec

Q: You have got a positive outlook from a one-year perspective with a target, which is significantly higher than where we are today. But, just between now and the election results, do you see significant gains being posted or the market is holding on to a tight range?

A: The market is likely to be rangebound. But, if you see markets across the globe, there are signs of global stability, at least our global strategists seems to be increasing weight on equities. Any signs of stabilisation across the globe could bode well for India because this is a market, which is definitely seen as a little bit more higher beta than some of the developed markets. Therefore, from that perspective, global cues are something to watch out for. 

Also, elections are an important event and the market could take cues from the elections as well in the short-term. However, overall we would be buyers at these levels. Though we understand that it could be rangebound, but if you are looking at the 12-months kind of view, there is a fair amount of value in the market currently.

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