Expect about 8% returns by year-end on Sensex: Kotak Instl
We see inexpensive valuations and reasonable earnings visibility as positives in an otherwise gloomy near-term macro outlook due to high crude prices and inflation.
June 02, 2011 / 09:09 IST
Here are experts equity calls for the day on how the markets are expected to trade:
Sanjeev Prasad, Kotak Institutional Equities: We see inexpensive valuations and reasonable earnings visibility as positives in an otherwise gloomy near-term macro outlook due to high crude prices and inflation. A potential decline in crude prices and improved governance may shore up sentiment. We expect about 8% returns by year-end with a Sensex target of 20,000.N Krishnan, CLSA: Q4FY11 results season indicates deceleration in earnings growth. During the results season, we've downgraded Sensex earnings by 3% and our revised FY12 Sensex EPS target is now Rs 1,207. While the Sensex PE of 15x forward earnings appear attractive given the growth, positive newsflow on macro front would be the key trigger. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
