Sensex will touch 21,000: Experts

Growth in corporate earnings expected

Sensex will touch 21,000: Experts

“Corporate earning will see a 25 per cent growth. Though there may be short-term corrections, the market will go up by another 20 per cent. I do see Sensex at 21,000 this year,” Angel Broking’s Managing Director Dinesh Thacker told PTI.
The banking sector, on the back of an expected 8 per cent GDP growth is likely to be amongst the top performing sectors in the new year, he said.
Also, infrastructure sector, where huge investments are expected, could also play a major role in the share market in 2009, Thackar said.

Sector performance
“Undoubtedly, a major sector that can perform well in short term and long term is infrastructure. Government is spending a lot of money on infrastructure and for the next five to ten years it would continue bullish,” he said.

However, telecom stocks, which faces intense competition in the market, might not prove to be a good option for short-term investors, Thackar said. Sensex, which opened at 9,647 points in 2009 closed the year around 80 per cent higher at 17,464 points.
Echoing the view, Kejriwal Research and Investment Services Director Arun Kejriwal said he expects the Sensex to reach above 21,000 level as the year progresses.

“Having done so well in 2009, the expectations about 2010 are so high. But it may not be realistic and may not happen. But a 2,500-3,000 points’ gain is possible. But the corrections also can be in this range,” Kejriwal said. Edelweiss Institutional Equities Co-head, Vikas Khemani also expects Sensex in the range of 21-22,000 in 2010. According to Khemani the Nifty is likely to rise up to 6,200 to 6,500 range in the course of the year.

An investor can normally expect a 20 to 25 per cent return from the market as Sensex may go up to 21-22k range and Nifty to 6,200-6,500 points,” Khemani said. He said the divestment in the holding of government-owned companies might provide fillip to the market rally in the new year. Also according to them monsoon could also turn out to be a decisive factor.

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