Global brokerage Nomura has increased its one-year target of benchmark BSE Sensex to 30,310.
The target is one of the most bullish for Indian markets and means a 17 per cent upside from current levels.
The brokerage had set a target of 27,200 for December.
The target is based on a conservative 12 per cent earnings compound annual growth between FY14 and FY17,
Nomura’s analyst team led by Prabhat Awasthi said in an India strategy report.
The Sensex trades at a projected 12-month earnings multiple of 15 times. Nomura expects the market to get re-rated and trade at 16.4 times.
Analysts have turned cautious on the Indian market after a 22 per cent gain in 2014.