Edit this postCLSA has put every Tom Dick and Harry investor at the sideline by predicting another 15-20 percent crash from the present levels. Their logic is as following for suggesting Sensex at 14000 by mid next year is as enumerated below:
- The Indian rupee has seen the worst devaluation since 1990-91, losing up to 20 percent. That could lead to sticky inflation numbers as imports have become more expensive in terms of rupees.
- RBI hiking interest rates have hit companies as high interest rates have led to a 60 percent fall in operating profits of Sensex companies between April and September.
- Poor economic governance, along with global concerns.
BNP Paribas also shares the same opinion on Sensex and same is aptly stated in the sentence; “The key question for investors is whether the worst of the headwinds are behind us. We think not.”
Keep visiting our website to get best stock market analysis as we feel that these brokerage houses change the stance at a drop of the hat. The same brokerage house on 04 Jan 2011 had given a target of 22,500 for Sensex. So instead of predicting a crash, the best approach is to follow the support and resistances and trade with trend.
