Can the BSE Sensex Sustainable Break 20,000 Mark ?
February 27, 2013
Credit Suisse discusses Five Favorable and Important Factors that can lead the Sensex to sustain above the 20,000 mark
- The Price / Book currently at 2.16x compares favorably with 4.9x at 2007 highs and 2.9x at
- Indian Market premium relative in to other emerging market has dropped considerably from 49% and 32% at the 2007 and 2010 highs to just 8%
- 2013 EPS is above 2007 levels. And 2013E consensus EPS revisions are flat.
- Inflation is slowing with the 3-month moving average for the WPI running at 1.7%
- Indian Budget is likely to be prudent – some fiscal tightening and spending restraint
Finally, Credit Suisse lists many risks such as corruption scandals and scams, election uncertainty, disappointing Budget and the current account deficit. What say ?