Sensex target at 20,000 for 9-12 months – IDFC SSKI

Sensex tgt at 20,000 for 9-12 mths; FY10 Sensex EPS seen at Rs 800; FY11 EPS at Rs 1032; sees continued earnings upgrade for next few qtrs; don’t see further downgrades to Bharti’s earnings: IDFC SSKI

Pathik Gandotra, MD & Head-Research at IDFC SSKI Securities said that Sensex target is at 20,000 for 9-12 months. He sees FY10 Sensex EPS at Rs 800 and FY11 EPS at Rs 1032. He sees continuedearnings upgrades for the next few quarters.

He said that the markets will do well on the back of earnings expansion. About Bharti Airtel, he said that he doesn’t see further downgrades to Bharti’s earnings. He has given neutral rating on RIL and among the banking space, his top picks are ICICI Bank, Axis Bank and SBI. Incrementally, situation is improving for Jet Airways.

He is positive on Yes Bank, IndusInd Bank and Shriram Transport. He hopes that realty companies are likely to learn from the past mistakes. Power sector got de-rating as multiple issues got listed. Investors are willing to wait for long-term in power. He expects that capex cycle is likely to rebound next year, which will drive engineering stocks.