Photographs: Punit Paranjpe/Reuters.
"Investors are sitting on huge cash piles and as the market is rising, they cannot sit sideways for long. A large chunk of cash is coming in the market and in such a scenario, hitting the 20,000-mark seems easy," CNI Research CMD Kishore Ostwal said.
"By October the Sensex is likely to cross the 20,000-mark and by November, I see it at the 21,000-level," Ostwal added.
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Sensex to cross the 20,000-mark soon
Image: BSE building lit up during Diwali.Photographs: Reuters.
Echoing a similar opinion, Network Stock Brokings Head of Institutional Sales & Strategy Prakash Diwan said hitting the 20,000-level would not be a big deal in the coming days.
"The market is driven by strong liquidity and FII inflows are expected to continue in the local stock market. Hitting the 20,000-level by Sensex would not be a big deal. Soon the Sensex will be able to reach that level," he said.
Sensex to cross the 20,000-mark soon
Image: BSE.The index has risen 122.3 per cent so far this year, from a low of 8,701.07 in October, 2008, on account of the global economic crisis. "I do not see any reason why markets should not move up. It is a liquidity-supported rally and unabated FII inflows would further push local markets," SMC Global Securities Equity Head Jagannadham Thunuguntla said.
"India is one of the hot spots for overseas investors and those fund houses, which were still watching the situation, now are interested to pick up local stocks as global equities are rebounding," Thunuguntla added.
...Sensex to cross the 20,000-mark soon
Image: A woman lights up lamps during Diwali mahurat trading at Bombay Stock Exchange.Photographs: Punit Paranjpe/Reuters
Three banking stocks -- SBI, ICICI Bank and HDFC -- accounted for about 70 per cent of the Sensex's rise from 18,000 to 19,000.
"Banks are on a rising streak on optimism that lending will pick up in a fast-growing Indian economy and that they are well capitalised," IIFL Vice-President (Research) Amar Ambani said.
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