The market is absolutely flat as the Sensex is up 6.80 points at 25587.14. The Nifty is up 1.15 points at 7788.55. About 1674 shares have advanced, 773 shares declined, and 114 shares are unchanged.
Reliance, Bharti Airtel, GAIL, Cipla and TCS are top gainers while ITC, ICICI Bank, Tata Motors, Sun Pharma and M&M are major losers in the Sensex.
Gautam Chhaochharia, UBS says consensus FY16, FY17 and FY18 forecast of 10 percent, 20 percent and 18 percent earnings growth still appears optimistic and top down estimate implies that cuts in 2016 may remain significant.
According to him, this (earnings forecast cut) will likely be broad based across sectors.
He sees limited room for a re-rating and forecast an end-2016 Nifty target of 8,200 based on a 15x one-year forward PE multiple.