Nifty looking at a 15-20% uptick this fiscal year -:- Equity Research

With a sharp rally in Indian stocks owing to a good recovery in emerging market indices, Manish Gunwani of ICICI Prudential expects the Nifty to grow by 15-20 percent in FY17. "Rally in the stocks are a result of a bounce-back in EMs. There is a global push, and monsoon and GST Bill possibility also look robust," he added.   He said that the ongoing macro recovery in India will eventually benefit the PSU banks the most. "There is a huge financial leverage in the PSU banks space and the debt-to-equity ratio is 15:1. How the government goes about consolidating the whole space, should be closely watched as it will help pick up quick asset recovery in these stocks," he said.   He is also rooting for the pharmaceuticals sector and has increased exposure in some of these stocks after they gained value and believes the space to be a key driver of exports. He is also bullish on equity space, and expects equity to remain the best asset class.