Sensex may cross 22K level in medium-term: Experts
The BSE benchmark Sensex may breach 22,000 level in the medium-term as low inflation is likely to pave way for the RBI to cut rates to fuel growth, say experts.
"Being greedy when others are fearful, the Warren Buffet way, is what that can drive Sensex to psychological 21,000 mark in the near-term as economic fundamentals still remain weak. Budget 2013 has already passed like a non-event for markets, despite some really big positives in it," said Vikas Jain, founder, Aditya Trading Solutions (ATS).
"Domestically, companies are sitting on huge cash pile, low inflation is paving way for RBI to cut rates, GDP seems to be bottoming out, enough reasons to say that peak 22,000 could be reality in medium-term," he said.
The BSE benchmark Sensex is 1,940.67 points away from its record high of 21,206.77 set in January 10, 2008.
The Sensex had yesterday climbed 265.21 points to close at 19,143.17, recording its biggest single day gain since November 29, 2012, when it had soared by nearly 329 points.
Markets can rally further on rate cut expectations from RBI in forthcoming credit policy this month, an expert said.
According to Ashika Stock Brokers, Research Head, Paras Bothra: "Before surging to record high levels, markets may see consolidation and some major positive trigger is needed to push the market to such higher levels. These are the pre- requisite for crossing the all-time high level.
"When it will happen is only a matter of time as one cannot time the market. If the US markets are heading
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