If the recent India strategy reports of institutional entities are anything to go by, it seems that the sentiments have changed for the good and investors are ready to bet more on India. While some of the research houses have raised their year-end target for the benchmark 30-share Sensex, there are others ready to allocate more to India, compared to some of the other leading emerging market economies.
Citi was perhaps the first major foreign brokerage that raised the Sensex target by more than 17 per cent to 18,100. Morgan Stanley also has a new year-end target for the Sensex at 19,400, over 15 per cent higher from the current levels. Meanwhile, Nomura is of the view that investors can switch to India, as against Indonesia or Brazil.
The benchmark 30-share Sensex of the Bombay Stock Exchange has lost nearly 4.50 per cent in the current calendar year. Foreign institutional investors (FIIs) have been net sellers at Rs 4,387 crore. However, Friday (May 28) saw the FIIs turning net buyers for the first time after 12 consecutive trading sessions. According to provisional figures, FIIs bought equities worth nearly Rs 410 crore on Friday.