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Citigroup: Sensex may hit 16k in 2007

Citigroup has been bold enough not only to give a forecast for the BSE Sensex 30 index in 2007 but also to believe that it could hit 16,000 by year-end. Their logic:

Citigroup’s regional equity strategist, Markus Rosgen, has set a target of 14700 to 16000 for the Sensex as of December 2007. This is based on a fair value of 13300 for Sensex and 10-20% premium on account of higher ROE’s(return on equity) and expected upgrade momentum for earnings estimates.

Given that’s its currently loitering around 12500, the Sensex would have to post a gain of 28% over the next nine months to hit the upper end of Citi’s target. Whaddaya think?

This entry was posted on Friday, March 16th, 2007 at 10:58 am and is filed under sensex. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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    One Response to “Citigroup: Sensex may hit 16k in 2007”

    1. Nikhil Says:
      March 16th, 2007 at 5:01 pm

      “Expected upgrade momentum” - “Higher return on Equities”- These short term predictions sounds like those during Tech boom times
      “New Paradigm”, or “DOW 36,000″.
      These guys tend to mislead investor to believe that there is no risk in the market (for the next one year). Time proved painful to those investors who ignored risk or rationalized this way during last meltdown. Only those who who had their asset allocation at or below their tolerance of risk survived worst bear markets. FINDING AND MAINTAINING AN INVESTMENT PLAN THAT WILL LAST THRO’ ALL MARKET CYCLES IS THE KEY. Better forget Citibank, Jim Rogers, Marc Faber.