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?
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