While fund managers believe the Indian markets are fairly valued, they remain neutral in the short term. According to a study, fund managers expect the Indian equity markets to be in the range of 16,000-18,700 by March 2012.
“Most fund managers continue to believe the markets are fairly valued. None believes it to be overvalued,” says the latest fund managers survey by ICICI Securities. “As compared to the last survey, a higher percentage of fund managers believe the markets are under valued.” The survey, however, adds that a majority believes the allocation towards equity markets at current levels should be increased, with an investment horizon of one year and above.
Seventy-five per cent of the fund managers do not expect major downsides for the markets from the current levels, and do not expect the market to be below 16,000 levels by March 2012. Further, half of the fund managers surveyed believe the market will be in the range of +/- 5 per cent from current levels till the end of the current financial year FY11-12. Most believe the European sovereign crises is a major cause of concern for the equity markets, along with higher crude oil prices.
