Nomura raises BSE Sensex target to 30,310 by end of August 2015.
Target implies a 17 percent gain from Tuesday's BSE closing level.
"The cyclical pick-up in growth is being ignored by the market obsessed with bold policy and reform moves by the new government," Nomura says.
Highlights Axis Bank
Separately, UBS maintains its 12-month target of 8,000 on the NSE index <.NSEI> saying concerns about government inaction are misplaced.
"We believe investors will be willing to give a premium for growth potential, especially as cyclical economic recovery starts manifesting in data points," UBS said.