The benchmark Sensex would rise to 35,000-level while NSE Nifty would touch 10,750 by end of 2016 on expected pick up in corporate earnings, Societe Generale has estimated.

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In end-December 2015, Nifty would end at 8,600 and the Sensex at 28,000, a little higher than their present levels, the European financial services major said.

Benchmark BSE Sensex is currently standing at little above 26,000, while NSE Nifty index is at 8,000 level.

"The impact of Prime Minister Modi's election on share market performance has clearly worn off," Societe Generale said in a report.

However, the report noted that catalysts for earnings recovery are in place.

"We expect the combination of monetary policy easing and robust economic growth to translate into increasing capacity utilisation and hence, higher earnings growth," it said.

Accordingly, Societe Generale has projected the Nifty to end 2016 at 10,750 and the Sensex at 35,000 from the expected pick up in corporate earnings.

"The Nifty, booming both before and after the May 2014 general election on expectations of reform, is in negative territory for the year to date, although still marginally ahead of other Asia emerging market indices," it said.

Meanwhile, the report also observed that there could be share price volatility ahead of the key Bihar state election result due on November 8.

"The result seems too close to call, but the impact should be both significant and short-lived," the report added.

Noting that Indian assets have been resilient amid the emerging market turmoil, Societe Generale said that the country "is one of the few large emerging market economies where economic momentum as measured by OECD's leading indicators has actually improved".