Nomura gives a thumbs up to India’s growth

The markets are in love with India’s growth story under the leadership India’s Prime Minister Narendra Modi and Governor of the Reserve Bank of India, Rajan Raghuram.

Encouraged by a surge in private consumption, investment, export demand, and the government’s attempt to resolve policy bottle necks, international investment bank Nomura Securities scaled up India’s growth projection for 2014-15 from 5 percent to 6 percent.

Nomura also estimates that the Sensex will rise another 15% in the next 12 months and has projected a rise in the GDP growth of 6.8 percent from 6.5 percent for fiscal year 2015-16 has been bumped up to

“We are seeing a broad-based revival. We expect this momentum to continue as the government is proactively resolving investment backlogs,” said Sonal Varma and Aman Mohunta of Nomura in a note on India.

The government is set to release second quarter GDP numbers on August 9.

German brokerage Deutsche Bank Markets Research also raised its growth projection for India to an eight- quarter high of 5.6 percent. Both Nomura and DBMR analysts say that India has begun its cyclical recovery.

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