Sensex target of 14,000 by 2007-end: UBS

Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS 13K - the dream comeback! What lies ahead? 13000 - How to play the markets now? ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

Q: Given the earnings of frontliners this quarter, is there anything that stands out that will give you the heart to say that we will continue to grow at about 20-25% in the short to medium term?

A: If you look at the recent quarterly earnings, apart from the two-wheeler numbers, earnings have been pretty much either in line or better than it, particularly in IT services, in the four-wheelers and in the banks.

So as of now, we are not really in any kind of concern as far as the earnings are concerned and as a consequence I don't think that estimate of close to 20% earnings growth in fiscal 08 would be violated at this point.

Q: What do you see as a road ahead from 13K plus in the next coming quarter?

A: We have a target of 14,000 by the end of 2007 and as of now we are maintaining that target.

Q: And what do you think would be the drivers taking the Sensex all the way up to that mark?

A: Firstly, continued strong earnings growth and we are bullish on the domestic cycle in particular the users of the commodity like autos, engineering, consumer staples and so on. In addition to that, atleast for the next two to three quarters, even the IT services earnings look pretty strong.

Q: Four wheelers or even telecommunications stocks have actually come on and delivered better than expected earnings this quarter, any theme that you see being played out in the road from 13,000 to 14,000 that hasn't been played out in so far as our road to 13,000?

A: Well not really, same old themes in terms of strong consumption, strong capex cycle and continued outsourcing of services is likely to be the theme from 13000 to 14000.