Mumbai: Despite a steep fall in benchmark indices, Credit Suisse appears upbeat about domestic market prospects and said the Sensex can still cross the 20,000-level in the "not too distant future".
"Having taken a pause for breath in the early part of calendar 2013, the domestic equities are likely to stage a comeback and our regional equity strategist is optimistic that the Sensex can move back above 20,000 on a sustained basis in the not too distant future," international brokerage Credit Suisse said in a report.
The Sensex and Nifty have been the worst performers in 2013 among the major indices, despite FIIs pumping in over USD 10 billion in the year.
"Apart from the valuation argument, our macroeconomic views support the bull case. As we have pointed out in the past, it is rare to see the market performing poorly when the country's growth/inflation trade-off is improving, even if it is just for cyclical reasons," the report said.
The Sensex hit a seven-month low today, extending losing run to the fifth day sliding over 211 points to end at seven-month low of 18,226.48 on sharp losses in most counters.
This is lowest close since September 13 last year.
Heavy selling after mid-session pulled it down to settle near the day's low level of 18,226.48, registering a fall of 211.30 points or 1.15 percent. Previously, it had settled at 18,021.16 on September 13, 2012.
In the five days of trading, Sensex has plunged by 814.47 points or 4.28 percent.
Similarly, the Nifty fell by 47.85 points to end at 5,495.10, also its lowest closing since September 13. Besides IT stocks, refinery, PSUs, FMCGs and realty shares attracted profit-booking even at current lower levels.
The main reason for the fall is sustained selling by FIIs, the main market mover. FIIs sold shares worth Rs 163.95 crore yesterday. This comes on the backdrop FIIs pumping in over USD 10 billion so far this year in to the market.