Dalal Street experts see Sensex sinking 1,000 points more – Economic Times

Posted on February 10, 2011 by

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MUMBAI: Investors may have to endure the pain of watching their equities wealth diminish another 9% in the coming days, a period that will throw up opportunities to build a stocks portfolio for retirement, a poll by The Economic Times shows.

The breakdown of governance, rising prices, interest rates, slowing foreign direct investment, portfolio outflows and surging commodity prices, including crude oil, are the immediate threats to India growth story sung by titans such as Jeff Immelt of General Electric and Kohlberg Kravis Roberts & Co’s Henry Kravis.

Benchmark Sensex, the worst performer behind Egypt this year with a 14% decline, may fall to as low as 16,000 in the worst move, an ET poll of 21 fund managers and brokers showed. Sensex declined 1% on Wednesday to 17,593.

Technology as a sector may outperform the rest as the US economic growth revival may boost orders for companies such as Tata Consultancy Services andInfosys Technologies . A likely weakening of the Indian rupee against the US dollar due to widening current account deficit may add to their profits.

Ranbaxy Laboratories , the local unit of Japanese drug-maker Daiichi Sankyo, engineering giant Larsen & Toubro and Tata Consultancy are the top picks of respondents.

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