Riding on the solid GDP growth and strong global liquidity flows into the country, the Bombay Stock Exchange's benchmark Sensex is likely to hit the psychological level of 23,500 by end-next year, an international financial sector expert said today.
"We are looking at good gains from the Indian equity market. The Indian equity market is poised for a tremendous growth. Looking forward, I will say the Sensex is likely to reach 23,500 level by December 2011," US-based Prudential Financial Managing Director John Praveen told reporters here.
There will be a strong uptrend in FII inflows as India's economic growth story is very strong, he said.
As per Sebi data, overseas fund houses were net buyers of Indian equities worth $6.42 billion during October, the highest amount pumped in by FIIs in any single month. The total net investment by FIIs now stands at $ 24.79 billion, the highest in a single year.
The developed nations are not growing to their full potential and hence, every one wants to capture the growth story of emerging markets, including India, which is driven by strong domestic demand and solid exports, the expert said.
Sectors such as infrastructure and industry are likely to fare well on the equity markets, he said.
During the first quarter of 2010-11, the Indian economy witnessed a healthy 8.8 per cent growth. The 30-share Sensex today settled at 20,589, down 286.62 points over its last close following mixed corporate results.
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