Sensex may touch 30,000 points in next copule of years

Here is some good news for us Indians and especially for the stock market investors

Madhusudhan Kela, fund manager, of country’s renowned Anil ambani group has predicted that the benchmark sensex will cross 30,000 points in the span of 3 -5 years down the line.

Though the has hinted caution about the market outlook in the next three months, Kela told PTI that he optimistic about the market figure in the longer term.

“I am bullish about the stock market’s performance in the medium to long term and expect the Sensex may even go beyond 30,000 level in the next 3-5 years. FII inflows are also expected to be robust in the long term,” Kela said.

From January to August, the Sensex has been moving mostly in the range of 16,000-17,000 levels, though it had touched its highest level of 18,475 points for the first time since February 2008 on August 19.

Currently the sensex is at 18,000 odd points and going by the prediction of Madhusudhan Kela if sensex achieves 30,000 points it will be an increase of 100 per cent.

Kela thinks the stock market may be impacted if FIIs start selling amid uncertainty in global markets.

“I expect the stock market may see a correction of around 10 per cent in the next three months if FII inflows, which are fuelling the stocks at present, become subdued. And there is not enough demand from domestic investors to keep the market afloat,” Madhusudhan added.

Foreign Institutional Investors (FIIs) have poured in as much as Rs 11, 447.60 crore so far in August, according to data available on the Securities and Exchange Board of India (Sebi) website.

With improving global economic conditions, the FII investments have been robust this year with their total inflows close to Rs 60,000 crore so far in 2010.