Sensex may hit 24,000 this year

The stock market is looking forward to a record-breaking year ahead in 2011, with hopes that the Sensex may trade above the 24,000-mark, given the economy is roaring, foreign investors are pouring money and scamsters will be kept at bay.

Despite the fact that the market has been see-sawing over the last few days, analysts and stockmarket players seem are bullish on Indian markets.

Surging ahead despite all the odds in 2010 - scams, weak global cues, inflation and rising interest rates - the stock market managed to register a 17 per cent gain (over 3,000 points) in the Sensex, with investor wealth rising over Rs 12 lakh crore.

During 2010, investors' total wealth, measured in terms of cumulative market capitalisation of all listed companies, rose to Rs 72,96,725.14 crore, from Rs 60,79,000 crore at the end of 2009.

The Sensex rose from 17,464.81 points on December 31, 2009, to 20,509.09 points at the end of 2010.

Market experts expect that its going to get better in 2011 and the Sensex will break all previous records to surge past the 24,000-level.

They also expect the rally to get more widespread compared to 2010, when growth was mostly limited to auto, banking, pharma and IT sector stocks.

"With GDP growth close to nine per cent in 2010, the Sensex is likely to hit at least 24,000 next year despite rising inflation," Globe Capital PMS Head, K K Mittal, said.

Equity broking and portfolio management advisor firm Convexity Solutions' MD & CEO, Sudip Bandyopadhyay, also forecast robust growth ahead for the country's economy and markets.

"2011 will present the opportunity for India to cross China in terms of GDP growth for the first time since liberalisation began."

However, he added, "It also poses the possible threat of India losing its stream midway by getting bogged with corruption issues, along with non-functional governance."

Last year, the market rose on the back of the highest level of net foreign inflows.