Analysis Published 1st September 2012 The headlines itself is an anomaly. The Sensex, which is currently at levels of 18,500 is expected to move up by another 8.1% to 20,000 levels in the next few months.
Read full analysis Sensex 20,000 and ten year bond at 7.85% for January 2013 prediction The good start for equities in 2013 will continue on the back of many positives. On the global front, the positive US jobs numbers for December 2012 and positive manufacturing data from China to Europe will drive equities higher. The temporary fix to US “Fiscal Cliff” gives markets time to evaluate future options for the US government in tackling its debt. US policy makers have a lot of work ahead in terms of increasing the debt ceiling and working through budget cuts and tax hikes.
Read full analysis The bond market may well take down bond yields by another 15bps to 20bps going into the policy review. However once the policy is over and supply starts in February, which is also the budget month, markets will become cautious. Bond yields will rise from lows in end of January but that rise could be temporary if the government succeeds in presenting a budget that shows fiscal consolidation.
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