The Hindu Business Line : `Fund managers see market indices rising further'

WITH stock indices at their all-time high levels, fund managers are expected to be bullish in the short-term, said a survey done by investment banking firm Merrill Lynch.

The survey said 69 per cent expect the BSE Sensex to trade between 6200-6499 over the next 3 months.

Fund managers are more bullish in the long-term and no one expects to see the Sensex below 6200. A significant 64 per cent of those surveyed expect the Sensex to cross 7000, with 27 per cent of those expecting it to be at 6600-6999 levels and nine per cent at 6200-6599. The survey was conducted between November 25 and December 15 with responses from 14 fund managers who manage over Rs 35,000 crore of assets.

According to the survey, most fund managers (87 per cent) would be buyers if the market corrects by 10 per cent. Interestingly, nearly half the fund managers (47 per cent) would sell if equity prices rose by 10 per cent. This is the highest percentage of fund managers wanting to sell on any sharp rise and ties in with the view that markets are looking fully valued.

On corporate profit growth projections most fund managers expect earnings growth around 20 per cent.

Fund managers are optimistic about the IT sector but Merrill Lynch expects them to rank the sector down on the back of rising valuations and an appreciating rupee. The automobile sector has slipped in rank for fund managers who are no longer bullish on this segment.

Small caps are expected to outperform large caps and fund managers favouring cyclicals were fewer than in the past.

More Stories on : Stock Markets | Mutual Funds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Catholic Syrian Bank to market SBI MF plans

Range-bound movement

`Fund managers see market indices rising further'

RIL gains on share buyback plan

Surya Pharma on funds' buy list

Outlook may turn positive for Infosys

Goldman Sachs stake in Suven Life crosses 5 pc

Banking stocks take centre-stage

APIDC Venture Cap mobilises Rs 150 cr for biotech fund