Global brokerage CLSA expects Sensex to touch 29,000 by December 2016, implying a 12 per cent upside from current levels.
Global bank Deutsche Bank also has a year-end target of 29,000 for Sensex while Morgan Stanley expects the benchmark to hit 30200. Citi however has a much higher year-end target of 32,000 for Sensex.
CLSA says that valuations of Indian markets look attractive at current levels and domestic flows will continue to be a key driver for Indian markets. Despite lukewarm participation from foreign investors last year, domestic institutional investors bought Indian shares worth Rs 67,241 crore (on a net basis), helping to support the Sensex.
CLSA's Top Large-Cap Picks: Reliance Industries, HDFC Bank, ICICI Bank, Maruti Suzuki, Infosys and Power Grid
CLSA's Top Mid-Cap Picks: IRB Infra, PVR, Persistent Systems and Torrent Pharma