CLSA has revised targets for Sensex as it feels that Sensex is trading at a P/E forward of 13.5 times for fiscal 2012-13 which is going to be eight percent discount to the past 10-year average, and it has maintained its “Overweight” rating on the index.
The main reasons for Sensex targets to be revised Southwards from 20000 to 19000 are as following:
- Widening current account and fiscal deficits
- Uncertainty over foreign taxation.
However do not go by the projections of these brokerage houses as their views change with the flow of water. Till last year it was recommending Sensex target at 14000 levels in year 2012. Check out CLSA Sensex Projection of 14000 Level in Year 2012 here.
The brokerage houses which are bullish on Indian markets are Goldman Sachs who last month upgraded Indian markets from “marketweight” from ”underweight” and same has been attributed to attractive stock valuations.
