Mumbai, May 26: Citigroup today said it expects the benchmark Sensex to reach above the 18,000-level by this December.
“Considering the macroeconomic situation and inflation which has shown signs of peaking, we believe the BSE index can be expected to reach the 18,100-level by December,” Citigroup India research head Aditya Narain told reporters here today.
“The deteriorating macroeconomic situation has been a significant headwind in the past for the domestic economy,” Narain pointed out.
The Citigroup has revised downwards its inflation target for FY11 from 8.4 per cent to 7.4 per cent. “We have revised downwards our inflation target for FY11 from 8.4 per cent to 7.4 per cent and expect a sustained rise in interest rates over the year. Rates in FY11 should rise by 50 basis points as against expectations of 100 basis points earlier,” Citigroup economist Rohini Malkani said.
–Agencies