Why BNP Paribas expects markets to soar despite poor economic indicators

Brokerage firm BNP Paribas believes that Indian stock market indices are likely to head higher despite recent new highs, coming on the back of lower growth and other poor economic indicators. It believes that the source of a resilient market may lie in factors outside the domestic issues that may be dominating the headlines.

BNP Paribas has set a target of 44,500 for the S&P BSE Sensex, a bellwether index. This is said to be driven by easier liquidity conditions across the globe. This, in turn, would push higher risk assets as investors seek higher yields, a positive for emerging