See 15% upside in Nifty to 9600: Macquarie

Rakesh Arora, Macquarie says post a healthy 7 percent correction, the market is now factoring in a slower recovery on the ground. "Earnings expectations have also been cut & now look realistic. The government has been able to break the logjam in parliament & has pushed through 3 critical reforms. Stalled projects are showing signs of revival & hope is alive," he adds.

He further says, "Downside risks to the market are limited to 3-4 percent from here, while we forecast 15 percent upside potential for the Nifty to 9,600 from 9,940 earlier."

The brokerage is increasing its weightage in private banks & pharma and reducing in materials & energy. Its top 3 picks remain Maruti, L&T and Axis Bank.