Brokerage firm Ambit Capital raised the BSE Sensex target to 29,500 for the financial year ended March 31, 2017 from 22,000. Ambit on April 22 said that the 30-share index would plunged to 22,000 at a time when the index was trading around 25,800 levels.
Since the beginning of the ongoing financial year, Sensex jumped 5.91 per cent to 26763.46 till June 9. The benchmark index was at 25269.64 on April 1, 2016. According to market experts, expectation of robust monsoon and firm global cues supported market sentiments in the recent past.
On June 10, the index was trading 64.57 points up at 26828.03 in the afternoon trade.
Ambit says it is “taking the crisis call off the table”, citing “firefighting done” by the Reserve Bank of India and the Banks Board Bureau “to resolve the asset quality and liquidity issues facing the banking sector.”
It reiterates investors focus on “well-managed companies with strong cashflows, credible management teams and believable financial statements.”
(With inputs from Reuters)