Tuesday, July 12, 2011

Finance.

Sensex likely to reach 22k-mark by March 2012: SMC Global

By PTI Apr 17 2011 , New Delhi
Tags: BSE, Sensex, Stock Market

Sensex likely to reach 22k-mark by March 2012: SMC Global
The stock market bellwether Sensex is likely to reach the 22,000-mark by March next 

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year as foreign funds will remain bullish on the prospects of India growth story, says financial solution provider SMC Global Securities.

It said that despite negative factors such as sinking industrial production, rising inflation and commodities prices, Sensex is likely to peak at 22,000 by March 2012 and its bottom levels are unlikely to slip below 18,000-mark since foreign fund will remain bullish on the prospects of Indian economy.

The positive factors will remain dominant over negatives for the Indian economy and will continue influencing investors, including FIIs to stay glued to the Indian capital market with long-term perspective as foreign funds seem to be convinced that Indian government will not sacrifice growth at any cost to create demand, it said.

"SMC expects IT sector to give reasonably good performance in the quarterly results for 2010-11," SMC Global Securities Chairman and MD Subhash Aggarwal said.

Positive conclusion of international events like recent BRICS summit towards India and China indicating its support for India in the UN Security Council have enlivened hopes for India to achieve over 9 per cent growth rate from 2011-12, he said.

SMC pointed out that negative factors like falling industrial production because of capital goods industry not fearing well and manufacturing activities sliding downwards will also improve in subsequent months.

"Concern like high inflation, crude oil prices and higher commodities prices would be there for some time but there is no need to panic since its one of the global phenomenon," Aggarwal added.

The firm believes that positive factors such as fruitful conclusion of the BRICS summit will fill in more enthusiasm in investors, particularly those of FIIs on the growth story of India.

Also, China dropping hints for her support to India for a permanent seat in the UN security Council is likely to add a new perspective about the Indian economy, positive reflection of which will appear on capital markets, he said.

Further, Aggarwal noted that growth in collection of direct and indirect taxes was seen in fiscal 2010-11 on the back of better performance of corporates and non-corporate front and that is why the government raised tax collection targets for current fiscal which is a positive sign and will influence investors to further strengthen their faith in the Indian economy and its stocks.
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