Mumbai, August 20: On the back of strong fundamentals, ample liquidity and calibrated launch of PSU IPOs, Reliance Money is bullish on the Sensex and says it would bounce back to the 20,000 mark by the end of this fiscal.
“The economic fundamentals are strong. India’s growth rate at 6-6.5 per cent is higher than most other economies and hence, it will attract investments. I expect a lot of FII inflows into India. The Sensex should shoot up to 20,000 levels by end-FY 10,” Reliance Money CEO Sudip Bandopadhyay, said in Mumbai.
With India’s economic growth being higher than most other economies, investors will find the Indian market more attractive, he said.
“Any sensible investor will invest in India…While there is degrowth in rest of the world, India is growing at a healthy rate,” he said.
Pension funds in the US will find India a good market to invest in, he said.
Comparing China with India, Bandopadhyay said the Chinese stock market was not as deep and transparent as India and hence, portfolio investments would be much higher in India.
Downplaying the threat of drought, Bandopadhyay said it would not be a hurdle to the upward movement of the Sensex.
“India can withstand one year, even two-years of drought,” he said.
—Agencies