SENTIMENT AND REALITY ARE FAR APART
A turn in sentiment has seen market participants increasing their year end targets for Sensex and Nifty to 21-22000, but the big question is on what basis are these targets being set.
STOCK RATINGS PRESENT A DIFFERENT PICTURE
Dalal Street obviously seems fairly divided over what would perform and what won't based on earnings expectations. For ease of understanding we assume that in cases where 70% of analyst's tracking a stock are having a 'BUY' rating only then we assume that the stock has a consensus 'BUY' rating.
Taking this assumption presents some startling revelations. Essentially there is a consensus 'BUY' on only 17 out of Nifty 50 stocks. In the absence of any conviction how can market participants bring out such bullish estimates on the benchmark indices....one tends to question.
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