Sensex likely to touch 60,000-mark: Expert

Even as the BSE Sensex is trading near the all-time highs of 31,300, and experts are calling for extreme caution, especially by small investors, there are experts who think that Indian stocks are in the middle of a multi-year rally.

A top official of city-based brokerage house has said that the Sensex can touch 60,000 levels in a few years in the case of a secular rally in stock markets.

Rajen Shah, chief investment advisor of Tradebulls Securities, said that market fundamentals are very strong, and a good run is likely in Indian equities over the next seven years. Speaking at Money Matters, an event organised by Tradebulls for equity investors in Ahmedabad on Saturday, Shah advised investors to opt for shares that offer low risk, higher reward ratio in the current year. “Investors should stay away from fancy counters in today’s market,” he said, opining that agriculture and railway related stocks offer strong growth potential for the long term. Shah attributed the ongoing rally in the stock markets to the strong governance and economic reforms undertaken by the government. He said that one can expect sharp rise in corporate earnings going ahead.

The Tradebulls official was also of the opinion that equity would remain the preferred investment option for investors as likelihood of strong returns from alternate investment avenues such as gold and real estate is low.

Sachidanand, assistant vice-president at Tradebulls, said that going by technical, Nifty is likely to cross 10,000-mark by September, and 10,800-mark by 2018.