According to a conducted by Reuters, sluggish Indian sensex may bounce back and will reach to 22,000 points by June 2014.
The benchmark BSE Sensex would gain almost 9 percent from current points, reaching 21,000 by the end of the year. It is then expected to gain a further 5 percent to a new high of 22,000 by next June, beating a previous record of 21,206.77 reached in January 2008.
In a poll conducted in month of March, strategists had expected the Sensex to end this month at 20,500, a level almost reached when the index hit a 2-1/2-year peak of 20,443.62 on May 20.
“We believe India’s macro fundamentals are well poised to improve on the back of the rate easing cycle and policy reforms,” said Deven Choksey, managing director of K.R. Choksey.
Analysts remain optimistic, even after the rupee has slumped to record lows this month on concerns that foreign investors would sell Indian investments should the U.S. Federal Reserve roll back its stimulus measures.
FIIs have pumped almost $14 billion into India so far this year and $22.2 billion last year, according to regulatory data, making them vital to stock markets, and the poll shows confidence that foreign flows will continue to support markets.
Finance Minister P. Chidambaram this month promised more fiscal and economic reforms, including opening up more sectors to foreign investment and revising power tariffs and locally produced gas prices.
Source – Thomas Reuters
©2009 Copyright by Invest In India