A significant number of investors and advisors see the BSE Sensex reaching 20,000 over the next six months, according to a survey by JP Morgan Asset Management and research firm ValueNotes.
“Indian investors and advisors appear unaffected by the recent volatility in markets. Fourty-eight per cent of retail investors and 76 per cent of advisors expect the benchmark index to trade between 17,000 and 20,000 in June 2012,” it says.
According to the survey, even as overall sentiment is subdued, there is growing optimism about global and Indian economic growth. Companies, advisors and high networth individuals are more optimistic now than in July, even as retail investors have become pessimistic.
The ebbing Investment Confidence Index (125) shows no sign of revival and was almost flat between July and December. It has declined continuously over the past year. While retail investment in mutual funds rose 0.9 per cent from the last quarter, that in stocks fell 0.6 per cent. Investors showed a lesser preference for stocks (down to 56 per cent from 70 per cent) and took a liking to MFs (rose to 68 per cent from 44 per cent) since March 2011.
