With only a week to go for the results, the note also discussed possible scenarios and how the market will react to it.
To discuss the events that impacted the market in the week gone by and the outlook going forward. CNBC-TV18 spoke to Gautam Chhaochharia, Head of India Research, UBS Securities and Ashwani Gujral ashwanigujral.com.
UBS has released their 2018 market strategy report and to discuss this CNBC-TV18 spoke to Gautam Chhaochharia, Head-India Research, UBS Securities
UBS Securities believes the currency will hover around 65 levels, but sticks to its year-end forecast of 70/USD, implying a weakness.
The RInfra InvIT Fund, with a proposed issue size of Rs 3,000 crore with an option to retain over-subscription of up to 25 per cent, will own 10 toll road assets, with an option to acquire further assets in future.
Although he adds that investors have beem closely following Narendra Modi after his decision to ban high denomination currency last year. So, any BJP win or loss by a huge margin is likely to affect market, he adds.
Speaking to CNBC-TV18, Gautam Chhaochharia, Head of India Research, UBS Securities, said the markets expect changes to the corporate tax regime and have already digested it,
Gautam Chhaochharia, Head of India Research at UBS Securities says the main impact would be felt in March as demand destruction continues. He feels the impact will last till the fourth quarter of FY17. The near-term worry due to demonetisation can still be felt, he adds.
Speaking to CNBC-TV18 Gautam Chhaochharia, Head of India Research at UBS Securities, said that the longer India story remains intact. Demonetisation doesn‘t impair the economic trajectory in the long term.
On speculation that RBI may pay a special dividend from the cash clean-up act, Gautam Chhaochharia of UBS Securities said that RBI should not be looked at as a company but as a policy-making body. Hence, it should not be presumed that the central bank will pay a special dividend.
Gautam Chhaochharia, Head-India Research at UBS Securities is of the view that one may look at agricultural space.
Gautam Chhaochharia, Head-India Research at UBS Securities is overweight on non-banking financial companies.
The broader long-term India story is fairly robust and remains intact. So long-term investors need not worry, but shorter-term, the market is richly valued, said Gautam Chhaochharia, Head-India Research, UBS Securities.
While the markets continue to rally higher, UBS's Gautam Chhaochharia believes that risk reward is still not attractive here.
In an interview with CNBC-TV18 Chhaochharia discussed the impact of GST on various sectors and how it will affect the corporate earnings.
Gautam Chhaochharia, Head-India Research, UBS Securities, says: "The consolidated fiscal deficit number is not looking good and the quality of spending will most definitely deteriorate as the bulk of spending will come from the states."
Gautam Chhaochharia of UBS Securities says one can't be too sure of retail investors participating in the market because they tend to look at the market from a 1/2-year returns point of view and the last year actually gave a negative return.
With this, the company's IPO has emerged as the most sought after public offer so far this year as the issue witnessed strong investor response on the first day itself.
The government will focus on steps to expand incomes, support childcare and nursing for the elderly, NHK said without citing sources. Abe will reveal the plan at a news conference on Thursday marking his election to a second three-year term, NHK said.
Gautam Chhaochharia, HD-India Research at UBS Securities is underweight in the capital goods space and feels that the extent of capex cycle based recovery will again disappoint investors over the next couple of years.
Gautam Chhaochharia, HD-India Research at UBS Securities likes telecom, oil & gas, financials and the pharmaceutical space.
Gautam Chhaochharia, HD-India Research at UBS Securities has a positive view on the pharma space and prefers the bigger names.
The much-talked about relief for PSU Banks appear convincing, says Gautam Chhaochharia, Head-India Research at UBS Securities. He admits it is difficult to predict if private sector best practices will be replicated by the PSU Banks five years down the line, but the direction is definitely positive.
According to Gautam Chhaochharia - Head of India Research at UBS Securities, Info Edge India is the favourite pick in ecommerce space.
According to Gautam Chhaochharia, Head of India Research at UBS Securities, Colgate Palmolive is the preferred pick from the consumer space.