Sensex may scale 18,000-mark: Citi

The Bombay Stock Exchange8217;s 30 share benchmark Sensex is trading 5.69 per cent lower so far this year. The index ended today8217;s trade flat at 16,469.55 points up 24 points,while its level on December 31,2009 was 17,464.81.

8220;India is trading below its long-term PE and PBV averages and is no longer expensive in absolute terms,and returns are looking up too. We see the environment supporting average multiples,which suggests 8-10 per cent upside from here,8221; the report authored by Aditya Narain said.

According to Citigroup,corporate earnings should rise 24 per cent in the current financial year 15 per cent over next fiscal. 8220;We get more constructive as domestic macro headwinds could well have peaked,worst on inflation,rates and the fiscal deficit possibly over,8221; Narain said.

The country8217;s top brokerage and investment banking firm ICICI Securities had said Sensex may scale past the 19,000-mark level this year,propelled by domestic factors like robust economic expansion and decent corporate earnings.

The only negative headwind the market can witness could be due to negative cues from global markets,but investors willing to stay invested for at least 15-18 months will not be disappointed with their returns,I-Sec managing director and CEO Madhabi Puri-Buch had said.