Sen­sex May Rise 3000 Pts More By Year-end: ET Poll

The Economic Times - - Markets + Finance -

The Sen­sex could rise by up to 3000 points from cur­rent lev­els by year-end as a new busi­ness-friendly NDA govern­ment im­ple­ments re­forms and re­moves hur­dles to in­vest­ment, a ma­jor­ity of par­tic­i­pants in an ET poll said on Mon­day. Stocks have ral­lied strongly in the last two trad­ing days ahead of the exit polls on Mon­day evening, led by for­eign in­sti­tu­tional pur­chases. These in­vestors net bought shares worth al­most ` 2,500 crore on Fri­day and Mon­day. “Mar­kets are ex­pected to ex­tend their rally on op­ti­mism of a sta­ble and strong govern­ment at the Cen­tre,” said Navneet Munot, chief in­vest­ment of­fi­cer at SBI Mu­tual Fund. Exit polls on Mon­day showed the BJP-led NDA se­cur­ing a com­fort­able ma­jor­ity in the just-con­cluded gen­eral elec­tions. In­dia TV-C Voter has esit­mated NDA will get 289 seats, while tele­vi­sion chan­nel Aaj Tak has pro­jected about 272 seats. In­dia To­day-Cicero is es­ti­mat­ing 261-283 seats for the NDA, while CNN-IBN-Lokniti ex­pects the al­liance to win 281 seats. Times Now is es­ti­mat­ing the NDA will get about 249 seats. By De­cem­ber 31, the Sen­sex could touch 25000, said 38% of the poll par­tic­i­pants. While 25% of the par­tic­i­pants ex­pect the Sen­sex to ad­vance to 26000, an­other 25% see the in­dex cross­ing 26000 by the year-end. “We be­lieve the cur­rent rally may con­tinue till the fi­nal ver­dict and that the long-term bullish trend is firmly in place,” said Sunil Sing­ha­nia, chief in­vest­ment of­fi­cer, Re­liance Mu­tual Fund. “Exit polls pre­dict people have voted for a sta­ble govern­ment at Cen­tre,” he said. A ma­jor­ity of those polled ad­vise in­vestors to buy stocks of banks, oil & gas, power, cap­i­tal goods, and in­fra­struc­ture. They rec­om­mend ex­it­ing de­fen­sive bets such as in­for­ma­tion tech­nol­ogy and con­sumer sta­ples.

In the poll, 63% of the par­tic­i­pants felt in­vestors could fully or par­tially book prof­its af­ter the re­cent rally as stocks may fall if the re­sults on Fri­day don’t match exit poll pre­dic­tions. Exit polls have got it wrong in the past. In 2004, var­i­ous exit polls had pre­dicted a BJP vic­tory, while in 2009 they fore­cast a hung Par­lia­ment. On both oc­ca­sions, the Congress-led UPA formed the govern­ment. A ma­jor­ity of the poll par­tic­i­pants said the mar­kets could fall 10-15% if a BJP-led Na­tional Demo­cratic Al­liance (NDA) does not form the govern­ment. “If there is a frac­tured man­date, mar­kets may see a sell-off,” said Munot. Mar­kets par­tic­i­pants ex­pect re­tail in­vestors, who are wait­ing for the elec­tion out­come, to start buy­ing if the re­sults are favourable. “If the elec­tion out­come re­sults in the for­ma­tion of a strong govern­ment with a ma­jor­ity, we may find fence-sit­ters with less ap­petite for risks get­ting into the mar­ket. This could push the Nifty to 7200,” said Kunj Bansal, ED & CIO,

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.