Sensex is estimated to touch the 22000-mark in one year, according to Credit Suisse, a Switzerland based private bank.
Investors wanting to invest in the equity market would find an attractive entry opportunity in the third quarter of 2011 as inflation and interest rate peak and the outlook on the macro start to improve, according to Credit Suisse.
“Although analysts feel that the earnings growth would be 18 to 19 per cent, we estimate the earnings growth to be around 15 per cent,” said Ms Toral Munshi, Head, India Equity Research, Credit Suisse.
According to their research, the consumer durables and fast Moving Consumer Goods (FMCG) sector have been the positive sectors. Stocks of HDFC, Hindustan Unilever, ITC and TCS reached their 52 week high last week. DLF, Reliance Communication, Reliance Infrastructure and Steel Authority of India (SAIL) were valued low.
“The banking and auto sector look attractive for investors to include their portfolio presently,” said Ms Munshi.
Investors are mainly concerned about the growth slowing down, disappointing market performance and worries about the foreign flows turning negative again.