Indian equity markets are expected to move in a narrow range during the year and the benchmark Sensex is likely to touch 29,000 by the end of 2017, says a Deutsche Bank report. According to Deutsche Bank's India Equity Strategy Report, 2017 is expected to be a year of uncertainty and the market is likely to be volatile and uncertain in the first half and recover in the second half.
"We expect the market to move in a narrow range during 2017, with recovery likely in the latter part of the year," Deutsche Bank said in a research note adding, "We are setting Dec 2017 Sensex target of 29,000 (around 8% upside) implying PE of 16.4 times on 2017-18 EPS," the report said. It also said that the market is likely to mirror the movement seen in the fourth quarter of 2016, unless the Union Budget surprises positively with a tax induced fiscal stimulus. Global factors that are likely to dictate trend include US President-elect Trump's economic policies, outcome of the French and German elections, how the UK manages 'Brexit' and the path of CNY.