Sensex may hit 21,000 by Dec: Deutsche Bank
Investment major Deutsche Bank sees Sensex at 21,000 by the end of December 2011. However, the bank sees oil prices and inflation as key concerns in the short-term.business Updated: Mar 07, 2011 21:44 IST
Investment major Deutsche Bank sees Sensex at 21,000 by the end of December 2011. However, the bank sees oil prices and inflation as key concerns in the short-term.
“India’s long-term story remains intact, though there may be headwinds in the short-term in the form of elevated inflation and soaring global crude prices,” said Abhay Laijawala, managing director, research head, Deutsche Equities India.
“We believe that in the second half of 2011, India’s structural strengths (strong growth environment and resilient domestic consumption) will re-assert themselves and the Sensex should rebound to 21,000 by December 2011.”
For long-term investors a correction in the short-term will be an excellent opportunity to pick value, the bank said. “In such an environment we prefer sectors, which are levered to global macro drivers. Hence information technology services, metals and oil and gas are our key over weights,” said Laijawala.