RBIs Professional Forecasters Survey: Expects Sensex To Surge To 20,000 Levels By Dec 2008

12 May

Posted by Shyam as Market News

Thats a big breather for many.Yes, for the first time ever the Reserve Bank Of India(RBI) has come out with its professional forecasters survey very recently. And it supports the long term growth story of the Indian markets in general. Well we have seen the markets falling like a pack of cards since mid Jan 2008. From its peak of around 21000 points the markets lost about 21% along with all other Asian markets. And also the Indian markets have been slower to recover from its lows too as compared to other markets.

So after all these here is a good piece of news for many. The RBI which came out with its forecasters survey says that the median forecast for sensex by end of June is around 16,907 points. The forecast figures by the end of Sept 2008(Q2) is about 18,235 points. And yes RBI is bullish on the Indian markets in the coming days and the forecast by the end of Dec 2008 is at 19,431 levels.

So by Dec 2008 end the Indian markets can be anywhere in between 19,000 and 20,000 points. So thats clear signal of total recovery from the lows of March 2008. We would be more than happy to see the markets reach those levels by the year end and recover totally from its lows.

Well in my opinion these forecast should be taken with a pinch of salt as the market conditions may turn any side in a given time due to several factors. Crude oil touching $124/barrel levels, rupee falling to 41 + levels, rising inflation and global cues can a severe impact on the markets anytime. But as always India will be the place from where the world is going to see some of the biggest advances in all spheres in coming time. And I always support the long term prospectus of Indian growth story.