Investment bank BNP Paribas has come out with its market outlook for Indian equities in 2013. The bank expects Sensex to attain a target of 21,300 by December 2013, indicating a modest 10 per cent growth from current levels of around 19,300.
"At our target, the Sensex would be trading at 14.1 times one-year forward price earnings and 2.28 times one-year forward price by book value," the investment bank said in a report.
BNP Paribas' Sensex target is slightly ahead of Citi's year-end target of 20,800, but in sharp contrast with the 25 per cent gains the Sensex has witnessed year-to-date.
Speaking to NDTV's Prashant Nair, Manishi Raychaudhri, strategist and head of research at BNP Paribas Securities said moderation in inflation, rebound in earnings growth, benign commodity prices and global liquidity injections are likely to drive Indian stocks in 2013.