India Rally at Risk as UBS Sees Earnings as ‘Glass Half Empty’
- Brokerage forecasts 10% profit growth vs 21% analyst estimates
- Market ‘getting carried away’ with pace of economic recovery
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The rally that helped India’s benchmark stock index post its best week in three months may have outpaced the recovery in earnings growth, according to UBS Group AG.
Net incomes at companies in the NSE Nifty 50 Index will grow 10 percent in the year to March 2017, slower than the 23 percent forecast by analysts, Gautam Chhaochharia, head of research at UBS Securities India Pvt. in Mumbai, said in an interview. The gauge ended 2015 within 3 percent of his target of 8,200.