FDI optimism, Goldman Sachs upgrade buoy mkt sentiment
Foreign brokerage Goldman Sachs upgraded Indian stocks to ‘overweight’ from ‘market-weight’, setting a December 2013 target of 6,600 points for the 50-share Nifty index, a 13% upside from current levels. The brokerage cited growth recovery and inflation moderation for its revised target. Earlier this week, Morgan Stanley set a probability-weighted target of 23,069 points for the Sensex for December 2013, implying a 26% upside, citing a steady recovery in broad earnings growth.
Foreign institutional investors continue to shop for Indian equities; with Tuesday’s purchases of $288 million, they have now bought stocks worth more than $19.7 billion so far in 2012, the largest amount in Asia this year. India remains among the best performing markets this year with the Sensex having posted dollar returns of 20.1 %, way above the 6.3% gained by Indonesia and 10.5% clocked by Taiwan. The Shanghai Composite has lost 9.7%.
Asian stocks also rallied on Thursday on optimism that the US would reach a budget deal before the end of the year to avoid a fiscal crisis. The Nikkei 225 and the Hang Seng indices each rose by 0.99%, while the Kospi and Straits Times indices rose by more than 1% each. The only index to buck the trend was the Shanghai Composite, which dipped by 0.51%.
What enthused the market
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