InvestorQ : Is it true that BNP Paribas has set Sensex target of 50,000 for next year?
vidhya Laxmi made post

Is it true that BNP Paribas has set Sensex target of 50,000 for next year?

sarah Leo answered.
1 month ago

BNP Paribas, one of the reputed FPIs operating in India for a long time, has made some interesting projections for the performance of the Indian markets in CY 2021.

a) BNP Paribas maintained overweight on Indian equities for the calendar year 2021. BNP Paribas has projected BSE Sensex hitting 50,500 levels in 2021.

b) This is interesting because it implies returns of nearly 9.5% from current levels, which is already quite elevated.

c) Other than India; BNP Paribas is also overweight on other emerging markets like China, Indonesia and Korea.

d) In terms of its model portfolio, BNP Paribas has added ONGC and Marico to its model portfolio and dropped Britannia considering valuation concerns.

e) BNP Paribas is also positive on Indian macros. It projects GDP to bounce back by 11.6% in 2021 and inflation to taper to 4.3%. in 2021.

f) BNP Paribas is betting on two sectors: private banks and insurance companies and expect both to benefit from market share accretion.

g) Interestingly, BNP also is betting on rural demand explosion in a big way and that is the theme and the driving force for consumer stocks in 2021.

h) Finally, BNP Paribas has also observed that India had two advantages over Asian EM peers; consolidation of bigger players and an abundance of quality stocks.

In short, there appears to be a lot of positivity in the perception of BNP Paribas about Indian markets for 2021.