RBS sees Nifty hitting 5,700 mark by December
Quotes

RBS sees Nifty hitting 5,700 mark by December

Last Updated: Tuesday, August 07, 2012, 19:10
 
 Comment 0
 
RBS sees Nifty hitting 5,700 mark by December
Mumbai: Sounding bullish on the equity markets, RBS Private Banking on Tuesday said it expects the NSE's Nifty index to hit the 5,700 mark by December.

An array of factors like investor-friendly steps to be taken by the executive on the policy front, a rate cut of up to 0.50 per cent by RBI post-September once inflation simmers, improvement in fiscal and revenue deficits, and a third round of quantitative easing in the US will help boost the markets which could see Nifty hitting 5,700 mark by December, RBS chief investment officer Rajesh Cheruvu said today.

The 50-share Nifty closed today at a four-month high of 5,336.70, up 1.03 per cent over yesterday.

The report comes within three days of American brokerage firm Morgan Stanley saying the markets are at the cusp of another round of bull run, citing attractive valuations.

The markets can even rise further above 5,700 and breach the 6,200-mark in case of positive developments like stronger growth in the developed world, an enhanced QE3 in the US, firmness in domestic growth and fall in inflation, Cheruvu said.

However, on the downside, he said the Nifty can slide to 4,900 levels if the US growth slows further, the size and form of QE3 disappoints, domestic issues like policy paralysis continues and monsoon fails to pick up, he added.

He further said the wealth management firm would prefer sectors like healthcare, IT, consumer discretionary and financials in the current scenario and will advise all to stay away from telecom and consumer staples.

Cheruvu also said that given the current scenario, large-cap stocks are a better bet for investors than the mid-caps as they are trading lower on the valuations front.

The higher flows coupled with falling crude oil and decline in gold imports would help the rupee regain the lost ground and could trade around 52 to a dollar by end of the year, Cheruvu said.

PTI




First Published: Tuesday, August 07, 2012, 19:10


Comments


comments powered by Disqus
Honda Mobilio MPV
Honda Mobilio MPV
BRICS Annual Summit 2014
BRICS Annual Summit 2014
Tata Zest Standout Features: In Pics
Tata Zest Standout Features: In Pics
New car launches in July
New car launches in July
Tata Zest first drive review: In pics
Tata Zest first drive review: In pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved