NEW DELHI: The S&P BSE Sensex has already rallied over 1700 points in a matter 17 trading sessions in the first month of the calendar year 2015. However, the euphoria is not over yet, with most analysts on Dalal Street anticipating another 5-10 percent kind of surge in benchmark indices ahead of the Budget 2015 due next month.
The culmination of the contentious Nuclear Deal with the US and expectations from the upcoming Budget 2015 would once again send a strong signal to offshore investors, that the new regime — led by Prime Minister Narendra Modi — means business and is on the right path to unleash reforms.
The pre-budget rally, which is already in progress, will strengthen going forward and push the Sensex and the Nifty to a fresh record high. The Sensex may hit levels around 33k and the Nifty should be able to break through its crucial psychological resistance level of 9k and hit 9300 ahead of the Budget 2015, say experts.
"The markets will react to Obama's visit with an elevated sense of euphoria. Talks have already begun on exactly how the defense and manufacturing sectors in India will benefit from a deep-rooted relationship between the two superpowers," says Raghu Kumar, Cofounder, RKSV.
"The BSE Sensex, being a few hundreds points away from the important 30,000 mark, could easily expect the mark to not only be broken, but surge another 10% - that is, to 33,000 levels by February 28th, when the Union Budget is presented by Finance Minster Arun Jaitley," he adds.
Technically, the market is likely to continue its uptrend with the positive bias in the near term as the overall health still remains positive.
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