The stock markets might see recovery by the end of this year, but it would take at least three to five years for benchmark equity index Sensex to reach its previous peak level of over 20,000 points, according to DBS Cholamandalam Asset Management.
"We see the Indian stock markets recovering late 2009, early 2010... (but) for the Sensex to reach 20,000 levels will take at least 3-5 years," DBS Cholamandalam Asset Management CEO Sanjay Sinha told PTI.
He said pharmaceuticals, automobiles, banking and infrastructure sectors would perform better in the bourses than others over a long-term period.
Sinha said that the markets are looking forward to the general elections, annual corporate earnings, domestic credit market improvement and recovery in the global economic scenario.
"Any adverse events affecting any of the above factors will tend to impact the Indian equity markets negatively," he said.
The BSE Sensex plunged to 7,697 levels on October 27 last year from the high of 21,206 points on January 10 2008. But it recovered later. On Friday, the BSE Sensex slipped 35 points to close at 8,966 levels.