Nifty may scale 11,800-mount by FY19: HDFC Securities

Mumbai, Jan 17 (PTI) Expecting an earnings growth of21.5 per cent next fiscal, domestic stock brokerage HDFCSecurities has set the Nifty target at 11,800 for fiscal 2019.The domestic stock brokerage expects Nifty earnings togrow by 13.5 per cent this fiscal year from 10.4 per cent ayear-ago.As per its estimates, earnings are likely to registera growth of 21.5 per cent, in fiscal 2019."There has been some recovery in earnings in the lasttwo quarters, and we believe it to be 21.5 per cent for nextfiscal. This will drive Nifty to 11,800 levels for the yearto March 2019," HDFC Securities managing director and chiefexecutive Dhiraj Relli told PTI here.The NSE index surged 88.10 points, or 0.82 per cent,to close at a new peak of 10,788.55 today, before touching anintra-day record of 10,803, surpassing its previous high of10,782.65 hit on January 15, while the 30-share benchmarkSensex jumped 310.77 points, or 0.89 per cent, to end at a newpeak of 35,081.82, before climbing 35,118.61 intra-day,bettering its previous intra-day high of 34,963.69 reached onJanuary 15.Relli further said the performance would also besupported by a positive domestic economic growth with "GDPlikely to grow 7.3 per cent in FY19 while GVA is likely printat 7.1 per cent" as GST regime stabilises and the ruraleconomy recovers.He also said recovery in private capital expenditureis on the anvil with encouraging manufacturing PMI andfactory output numbers.On the upcoming Budget, Relli said he is not expectingpopulist spending ahead of the next general elections.On fiscal deficit he said it will be marginal at 10-15basis points only.On possibility of long term capital gains tax on equities, Relli said he only expects a "soft" introduction with a holding period for tax exemption rising (from 1 to possibly three years) and low tax slab (like 10 per cent) for profits on selling of stocks held for 1-3 years.

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