Sensex to touch 24k by 2008-end: Macquarie

Sensex to touch 24k by 2008-end: Macquarie


Mumbai: Indian stock market will continue its bull-run next year with its benchmark index Sensex likely to touch the 24,000-mark by the end of 2008 on strong performances of blue-chip companies, Australian banking major Macquarie said.

“We think that 2008 has the possibility of being, yet again, a great year for the Indian market. Our end-year index target is revised to 24,000," it said in a report.

“Our top picks in the country are, therefore, DLF, Reliance Communications, HDFC Ltd, Tata Steel and Reliance Industries. Our top under-performers are ONGC, SBI and Maruti Suzuki," the report said.

Bullish on domestic consumption, easing rates and capital spend, Macquarie has recommended investors to stick with these three themes.

Observing that India would be in a ‘sweet spot´ with domestic growth bolstered by capital flows even as the US slows without slipping into recession, Macquarie said these would help Indian companies to raise value in sister firms.

“As liquidity chases stocks in India, we see companies realise value in subsidiaries and ancillary businesses during the next year," the report said. Almost all sectors would have a play in this - insurance subsidiary of banks, tower arms of telecom firms and asset spin-offs from infrastructure companies.