Fund managers of 23 fund houses who manage Rs 170,000 crore believe the benchmark indices, BSE Sensex and S&P CNX Nifty will be up between 10 and 20 per cent in 2010. The survey is done by Mumbai base investment and brokerage firm JM Financial Services. Fund managers expect BSE Sensex to trade at the price to earnings multiple of 16 based on net earnings for the financial year ending March 2,011.
The survey suggests that 45 per cent of Fund Managers expect the Sensex to consolidate in the first quarter of calendar year 2010 and likely to rise over the remainder of 2010. The flow of money in the capital market likely to be mix of foreign (FIIs) and domestic investors, but insurance money can be a big driver for the next stage of rally. So, the Sensex could move in a narrow band in the calendar year 2010 with upward target of 18,000.
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