Sensex at record highs, but buy selectively, say analysts
MUMBAI: The Sensex snapped a nine-day roll at all-time highs on Thursday
as traders and investors paused to book profits or take a reality check
on the wave of optimism sweeping stock markets. The benchmark index
ended marginally down by 0.2%. Analysts said the time was still fine to
invest in equities but advised selective buying at dip, with an
investment horizon of at least six months.
Experts trained their eyes on earnings prospects and valuations amid the cheer spread by expectations of an economic rebound and pro-growth policies from the 100-day-old Modi government.
On Thursday, the BSE benchmark index closed at 27,085.93, down 54 points, or 0.2% and the broader NSE Nifty fell 18.65 points to close at 8,095.95.
The Sensex has gained 28% so far this year. It has in fact surged 5.3% in the past one month.
Experts trained their eyes on earnings prospects and valuations amid the cheer spread by expectations of an economic rebound and pro-growth policies from the 100-day-old Modi government.
On Thursday, the BSE benchmark index closed at 27,085.93, down 54 points, or 0.2% and the broader NSE Nifty fell 18.65 points to close at 8,095.95.
The Sensex has gained 28% so far this year. It has in fact surged 5.3% in the past one month.
“At the peak of January 2008, the Nifty was valued at 28 times its
price-to-earnings ratio. Right now, it is only 19-20 times. So there is
still a lot of room for money to be made, if the investment perspective
is 6 months to 1-2 years,” said Rahul Shah, vice-president, equity
advisory group, Motilal Oswal Securities.
Experts also said that improving macro-economic indicators, a pick-up in auto sales and the government’s push to infrastructure projects will continue to drive markets higher.
“Minor corrections can’t be ruled out due to the recent rally. But overall, we remain positive on the markets given the improving economic conditions. One should invest for a minimum 6-month timeframe. We are bullish on the auto sector,” said Sanjeev Zarbade, vice-president, private client group research, Kotak Securities.
Motilal Oswal expects the Sensex to hit 30,000 by December, and is bullish on stocks in the oil and gas, software services, private banks and non-banking financial services sectors.
Among foreign brokerages, Nomura has raised its Sensex target to
30,310 by August 2015 while Deutsche Bank has set a milestone of 28,000
for the index by December.
Experts also said that improving macro-economic indicators, a pick-up in auto sales and the government’s push to infrastructure projects will continue to drive markets higher.
“Minor corrections can’t be ruled out due to the recent rally. But overall, we remain positive on the markets given the improving economic conditions. One should invest for a minimum 6-month timeframe. We are bullish on the auto sector,” said Sanjeev Zarbade, vice-president, private client group research, Kotak Securities.
Motilal Oswal expects the Sensex to hit 30,000 by December, and is bullish on stocks in the oil and gas, software services, private banks and non-banking financial services sectors.
NAME- RAJ GAURAV
PGDM 3 SEM
