Nifty seen at 11,600 by Dec 2018: Kotak Securites

Mumbai, Dec 27 (PTI) Expecting economic recovery andstrong earnings growth, brokerage Kotak Securities predictsthe benchmark Nifty to touch 11,600 by end December 2018.According to Kotak Securities market outlook reportfor 2018, GDP growth is likely to recover as negative effectsof demonetisation and GST is expected to recede, while 23 percent earnings growth is expected for nifty during the nextfiscal.The earnings growth is after a disappointing growth ofabout 4 per cent in the current fiscal, the report noted."We set the Nifty target of 11,600 by the end of 2018(i.e. upside potential of about 11 per cent from currentlevels), " Kotak Securities said.As Kotak estimates FY19 GDP is expected to grow by 7.1per cent. "GDP growth is likely to recover as negative effectsof demonetisation and GST recede," the report added.The report also noted that government expenditure onrural economy and investment cycle to pick up in the secondhalf of 2018. Besides, government spending on affordablehousing and infrastructure will have a multiplier effect, itadded.Also, robust markets are expected as the share ofequities in the overall financial savings is seen to be risingin the future."Assuming only 3-4 per cent of incremental household savings going into equities, it equals USD 16-18 billion per annum," it said.

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