More reforms from the central government, the bulls made a fresh dash on the Dalal Street on recently, pushing the benchmark Sensex past the 19,000 mark to a 15 month high.
The latest round of reform measures are expected to provide a major impetus to the ongoing stock market rally. which is expected to strengthen further.
Mr. Saurabh Mukherjea, Head, Ambit Capital, said, “India’s big picture has become more positive, and the market will see a nice rally between now & Diwali on the back of the reforms. The market is heading toward the 23,000 mark in the next 12 months, and our sense is that a whole range of reforms such as fiscal consolidation roadmap, land acquisition bill & financial market reforms are in the pipeline.”
The benchmark Sensex has given 23% returns in this calendar so far, buoyed by huge inflows from FII's (foreign institutional investors), who have invested over $ 1, 630 billion in Indian equities so far this year.
Mr. Rakesh Arora, Head - Research, Macquarie Capital Securities, said, “We are looking at a Sensex target of 21600 over the next 12 months.”
Mr. Deven Chokesy, MD, KR Choksey Shares and Securities, said, “The government’s decision to push reforms will bring in more money into the system. This will help curb volatility in the rupee, which will in turn result in more foreign money inflows. Market sentiment is likely to remain bullish for some time, but one needs to be cautious going ahead, as the winter session of Parliament and elections in many states can trigger volatility over the next 2 months.“
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