Ambit ditches Sensex 22,000 target, forecasts 29,500 by FY17 end

Moneycontrol BureauA number of brokerages have turned bullish on India of late, such as the likes of HSBC (turned neutral from underweight; target 26,000), Citi (upgraded target to 28,800) and CLSA (increased India overweight by 1 percent).One of the notable changes in view that has been is brokerage house Ambit turning positive on India.In a note to investors, Ambit said it had revised its earlier FY17-end target of 22,000 on Sensex to 29,500."Although the possibility of Sensex 22,000 remains real, it is no longer our base case scenario, thanks to the firefighting done by the RBI and the Banks Board Bureau," Ambit said in a note.Ambit had earlier predicated its case by pointing to the weak state of banks, saying high NPA stress would lead to weak credit growth and leave them unable to finance economic or earnings growth.The fourth quarter results season has led many analysts to believe that earnings are finally turning around, even as GDP growth too has picked up (7.9 percent in Q4).