Anybody who is saying that in five years the Sensex will go to 60,000 is only saying that in the next five, years the Sensex will generate a CAGR of around 19 per cent, says U R Bhat, managing director of Dalton Capital Advisors.
India's macro finances are getting into good shape.
Only 10 per cent of stocks account for 93 per cent of investments.
They have been on an unbroken selling streak since the Union Budget, spooked by increase in income-tax surcharge, taxes on buybacks, and lack of stimulus to prop up the economy.
In the past four months, $7.5 billion has flowed back into domestic stocks, helping the benchmark indices bounce back more than 40 per cent from their 2020 lows.
Indian equities are no longer cheap vis-a-vis global markets, and only a short distance away from being the most expensive they have ever been.
The Sensex is on course to ending calendar year (CY) 2019 at a price-earnings (P/E) multiple of 29x, the highest in 25 years. Current valuations are, however, lower than those seen in the early 1990s. The Sensex has risen close to 14 per cent in the last 12 months, while the index underlying EPS dropped 6.7 per cent during the period.
"The shift is gradually happening more on account of favourable risk-reward for stocks in these sectors and the shift would be more pronounced as investors roll over their targets to 2017," the head of research at a foreign brokerage said.
While three of the top five FPIs - Capital, Government of Singapore, and Vanguard - have seen their investment value more than triple, India's benchmark indices have risen just 70%.
In three of the past four years, 10-year returns have been 10 per cent or lower, making equity unattractive, compared to other asset classes.
A tally around 150 in Gujarat can see the index hit 10,700 levels going ahead
Experts say foreign investor sentiment was bolstered by the US Federal Reserve's decision to go slow with interest rate hikes and hopes of political stability.
MF investors may not be able to support markets fall if selling intensifies
Turnover on exchanges dips to pre-Modi levels
On Wednesday, FIIs sold shares worth Rs 1,573 crore.
The adjustment orders for AY2012, are expected between January and March 2016.
FIIs pump in $1.4 billion in March, after pulling out $2.9 billion in Jan-Feb.
The Karnataka election is being seen as the semi-final to the 2019 general elections and appears to be heading towards a close fight
'Unless India Inc's earnings offer promise in March 2017 quarter, sentiment may not reverse in a hurry.'
Since 2005, in 8 out of 10 years (except in CY11 and CY14) the benchmark indices have given positive returns in December.
Participants will keenly watch fate of GST Bill in Parliament.
The sentiment around Indian equities remains positive and unchanged.
The year 2014 has been one of the best for investors in the equity markets.
Experts say the stock market correction in recent times increases the risk-reward in favour of large-cap stocks.
A total of 183 stocks rallied 10 per cent, of which 32 stocks saw price appreciation of 20 per cent each.
Analysts say markets to be impacted by monsoon, inflation trajectory.
Demonetisation, Donald Trump's surprise victory in the US presidential elections, and the fear that US Fed may hike rates in the upcoming policy review in December have dented market sentiments, report Puneet Wadhwa & Deepak Korgaonkar.
CBDT circular issued last month had raised multiple taxation concerns.
Given the developments, analysts do not foresee a quick recovery.
Since its peak, the S&P BSE Sensex has dropped nearly 3,000 points.
Only six sectors are likely to report good set of numbers in Q4 FY15.
While selling started in April, it has intensified this month, with FPIs pulling out $1.1 billion and $2.5 billion from equities and debt market, respectively
There have been demands from a section of stakeholders that the long-term capital gains tax on equities be reimposed.
Equity investors should thank cash-rich biggies such as TCS, ITC, HUL, Nestl, and Bajaj Auto for this.
'The news about the new virus strain in the UK provided them with an opportunity to take money off the table.'
There is a near consensus that at least a 25 basis points cut, if not 50, can be expected in the June policy.
Avoid fresh investments, as there might be more opportunities in the coming months, market experts tell Joydeep Ghosh
Analysts expect global markets to remain in consolidation mode with a negative bias over the next six months.
Market players say following the tax cuts, the market mood had changed from bearish to positive, which should help sustain the rally.
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