Analysts have begun sticking their neck out and are predicting a target of 30,000 points on the Sensex if elections in Greece do not act as a wet blanket for the market.
Macro Economic Data Begins to Cheer
In fact, the reasons for optimism are plenty. Take the case of macro economic data. The IIP or industrial output for the month of November came in at a healthy 3.8 per cent beating most estimates.
RBI Might Cut Interest Rates
A lot of fuss has been made around cutting interest rates. With WPI and CPI Inflation hitting lows, its likely that the RBI may cut interest rates going forward. In fact, the RBI has said that it may even cut interest rates outside the policy, which could be good news for the markets. A cut in interest rate could
boost corporate earnings and push the markets higher.
Earnings Upgrades Likely
Analysts believe there could be an earnings upgrade which could push markets higher. The earnings season has begun with a bang with Infosys already reporting robust numbers. Banks could also report good numbers along with other IT Companies. This could see some recovery in the stock markets going ahead.
Falling Crude Prices a Boost
Falling Crude Prices have put India in a sweet spot. The country imports 70 per cent of its crude oil which is certainly good news for the country.
A pre-budget rally
Analysts are extremely bullish on the Sensex and the Nifty in the near term. Most of them suggest that indices could be headed for a pre-budget rally. Expectations from the Union Budget this time around are extremely high for a path breaking Budget. How far they translate into meeting expectations is another matter altogether. For the time being most analysts are for sure expecting a pre-budget rally.