Indian stocks to scale new highs: Poll

Weak corporate earnings remain a concern, Sensex will reach record high by year-end

The Sensex will reach a record high by year-end, driven in part by confidence the government will likely pass through reforms, according to a Reuters poll of strategists who said weak corporate earnings remained a concern. 

With gains of over 15 per cent so far this year, the Sensex has outperformed most major global indices, overriding worries about domestic company performance in part, thanks to a pool of global investor cash looking for higher returns. It is now forecast to rise 7 per cent to 33,000 by December-end from Wednesday's close of 30,834. It is then expected to reach 34,500 by mid-next year. March predictions for the Sensex to reach 30,294 by the middle of this year were breached last month and it is close to passing end-2017 expectations.

Similar gains are forecast for the NSE Nifty, predicted to trade at 10,000 by end-2017, up about 5 per cent from Wednesday's close, and then rise to 11,000 by the end of 2018.