BSE Sensex plunged 10.32 per cent in the previous financial year ended March 2016. However, the index gained marginally 0.58 per cent to 25341.86 till May 31.
Anticipation of normal monsoon which will support rural demand going ahead pushed HSBC to upgrade Indian equity markets to ‘neutral’. The global investment bank had ‘underweight’ rating on domestic stock markets since April 2015.
Benchmark BSE Sensex plunged 10.32 per cent in the financial year ended March 2016. However, in the ongoing financial year, the index gained marginally 0.58 per cent to 25,341.86 till May 31.
HSBC in a research report said, “Domestic liquidity improving on RBI measures, points to signs emerging of green shoots in economy. Normal monsoon also bodes well for rural demand.”
It also added that valuation have become more reasonable, but are still far from attractive and said earnings may still underperform compared with expectations.
HSBC upgraded Sensex target for the year to 26,000 from 25,000. Sectorwise, the global brokerage upgraded IT to ‘overweight’ and Industrials to ‘neutral’ and downgraded healthcare sector to ‘neutral’.
However, G Chokkalingam, founder, Equinomics Research & Advisory believes Sensex can touch 30,000 by December end.
ICICI Securities has December target of 8,500 for Nifty.
(With inputs from agencies)