BNP Paribas Securities sees the benchmark Sensex touching 22,000 mark in 2014, even as it cautioned over the earnings estimates in medium term.
“In the medium term, we remain cautious about earnings estimates and relative valuations. Earnings downgrade cycle is not yet over and we are in the final stages of earnings decline,” said BNP Paribas Securities India Asia Pacific Strategist Manishi Raychaudhuri.
“We see Sensex to touch 22,000 in 2014. The out-performance of the Indian market could continue for some more time because the euphoria about local developments is for the time being, taking precedence over global concerns,” Raychaudhuri said.
“We believe that Asian ROEs are likely to improve in 2014, albeit marginally. Recovery could be driven by China, HK, India, Malaysia and Philippines among countries and industrials, consumers and financials among sectors,” he said.
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