Driven by the election outcome, the benchmark index Sensex could catapult to 19,500 levels this year, provided the government pushes through the reform agenda. Market experts believe that the reforms expected to be carried out by the new government may keep the market sentiment upbeat and propel the index to regain the levels, it had seen in 2007, in the months ahead.
"Our upside target for the Sensex is 19,500 this year which the index may climb if the government surprises us with a phenomenal budget-Morgan
The financial sector reforms which are there before the government include raising FDI cap from present level of 26 per cent from 49 per cent through amendment in Insurance Act, pension reform and banking sector reforms.
Echoing similar view Reliance Capital Asset Management equities says 19,500 levels were possible this year but would depend if the government aggressively carries out the expected reforms.
Meanwhile, if the global market turn downwards and the government fails terribly to keep up public expectations, the index may see a level of 8,500 on the downside.
Besides, Foreign Institutional Investors have also turned bullish on Indian equity markets and have made net investments to the tune of Rs 14,586 crore (around 3 billion dollar) in May so far.
The coming Budget should give some signal as far as reforms are concerned.
No comments:
Post a Comment