Deutsche Bank sets Sensex year-end target at 18,000

[caption id=“attachment_177817” align=“alignleft” width=“380” caption=“Banks, real estate and infrastructure will be the key drivers in 2012 . Reuters”] [/caption]

Deutsche Bank has set an year-end target of 18,000 for India’s benchmark 30-share stock index, a 14 percent rise from current levels as it sees restoring confidence in the capital markets as likely to be the strongest starting point for the government to make policy changes.

“At our target, the Sensex would trade at a forward price to earnings multiple of 13.8 times,” the German bank said in a note.

Banks, real estate and infrastructure will be the key drivers in 2012 and Axis Bank, ICICI Bank , Coal India, Larsen and Toubro, TCS, Bharti and DLF were the top picks, it said.

Reuters