‘Sen­sex may Touch 27K by Year End’

The Economic Times - - Econ­omy -

The Nifty has gained 9% in the past 10 days and 15% since the be­gin­ning of the year. China, In­dia’s big­gest emerg­ing mar­ket ri­val, has fallen 4.30% year-to-date, while Canada has risen 7.10%, UK, 0.87% and the US is up 1.94%. “The mar­kets have enough steam to run up to the 27000 lev­els by year-end,” said Kaku Nakhate, MD and coun­try head of Bank of Amer­ica-Mer­rill Lynch. “There are a huge num­ber of FIIs wait­ing in the wings — those who missed out on the rally — to come in at ev­ery cor­rec­tion. Not just FIIs but I also ex­pect do­mes­tic in­sti­tu­tions and re­tail in­vestors to in­crease par­tic­i­pa­tion,” Nakhate said. What is im­por­tant to note here is that In­dian mar­kets have con­trib­uted close to 50% in the re­cent $572 bil­lion in­crease in global mar­ket cap­i­tal­i­sa­tion. In­dia’s con­tri­bu­tion of $282 bil­lion is equiv­a­lent to to­tal GDP of Philip­pines. In­dia now com­prises 2.2% of the world mar­ket cap­i­tal­i­sa­tion com­pared with 1.8% at the be­gin­ning of the year. Ac­cord­ing to Bloomberg, since the be­gin­ning of the year, for­eign funds have pumped in $7.6 bil­lion dol­lars in In­dian eq­ui­ties, which is high­est among all emerg­ing mar­kets. “Mar­ket cap­i­tal­i­sa­tion is linked to GDP of a coun­try. As GDP grows, mar­ket cap­i­tal­i­sa­tion grows,” Rasesh Shah, Chair­man of Edel­weiss Group said. “As re­gards In­dian mar­kets, its mar­ket cap­i­tal­i­sa­tion is close to 75% of its GDP. In com­par­i­son with this, in de­vel­oped mar­kets, the mar­ket cap­i­tal­i­sa­tion to GDP ra­tio is over 100%. This means In­dian mar­kets have a lot of room to catch up,” said Shah.

In­dian mar­kets have con­trib­uted close to 50% in the re­cent $572 bil­lion in­crease in global mar­ket cap­i­tal­i­sa­tion

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.