Experts bullish on 2010 stock market; see Sensex at 21k

Experts bullish on 2010 stock market; see Sensex at 21k Mumbai: A significant pick up expected in the corporate earnings and the strong fundamentals of economy undeterred by financial meltdown, is likely to bring cheers to share markets in 2010, experts said.

"Corporate earning will see a 25 percent growth. Though there may be short-term corrections, the market will go up by another 20 percent. I do see sensex at 21k this year," Angel Broking's Managing Director Dinesh Thacker told a news agency.

Banking sector, on the back of an expected 8 percent GDP growth is likely to be amongst the top performing sectors in the new year, he said.

"Indian banks, both in public and public sector, are well capitalised. We expect the credit growth to pick up further, which is a good news to banking stocks," Thacker said.

Also, infrastructure sector, where huge investments are expected, could also play a major role in the share market in 2009, Thackar said.

"Undoubtedly, a major sector that can perform well in short term and long term is infrastructure. Government is spending a lot of money on infrastructure and for the next 5-10 years it would continue bullish," he said.

However, telecom stocks, which faces intense competition in the market, might not prove to be a good option for short-term investors, Thackar said.

Sensex, which opened at 9,647 points in 2009 closed the year almost double at 17,464.

Echoing a similar view, Kejriwal Research and Investment Services Director Arun Kejriwal, said he expects the sensex to reach above 21k level as the year progresses.

"Having done so well in 2009, the expectations about 2010 are so high. But it may not be realistic and may not happen. But a 2,500-3,000 points' gain is possible. But the corrections also can be in this range," Kejriwal said.

Edelweiss Institutional Equities Co-head, Vikas Khemani also expects Sensex in the range of 21-22k in 2010. According to Khemani the Nifty is likely to rise up to 6,200-6,500 range in the course of the year.

"An investor can normally expect a 20-25 percent return from the market as sensex may go up to 21-22k range and Nifty to 6,200-6,500 points," Khemani said.

He said the divestment in the holding of Government-owned companies might provide fillip to the market rally in the new year. Also according to them monsoon could also turn out to be a decisive factor.