Sensex to hit fresh record highs in 2015; top 40 investment ideas by brokerage firms

NEW DELHI: Year 2014 closed on a bullish note for the India markets, with the Sensex clocking a return of 30 per cent - highest in the last five years. Well, the rally is not over yet and the index is well on its way to hit fresh record highs in the year 2015 as well, say experts.

Indian stocks saw stupendous gains in 2014 with mid cap stocks outshining large caps. The rally got further strengthened towards the mid year after the BJP, led by Mr Narendra Modi, formed its government at the Centre.

Markets loved Modi and a large part of the rally was led by strong buying by foreign institutional investors (FIIs), which have pumped in close to $16bn in equities during the current year.

"The BSE touched new highs in 2014 and is likely to carry this momentum in the coming year too. The caveat, of course, is delivery on domestic policy implementation and relative global economic stability," said Jayant Manglik, President - Retail Distribution, Religare Securities Ltd.

"The government’s focus on increasing retail participation in equity markets should see some clearer guidelines and will be reinforced with continuing optimism," he added.

Analysts expect FY15/FY16 earnings growth of 15 per cent each and the best case scenario of 30,000 for the Sensex in case of a market-friendly budget.

Through the broader index has moved up smartly in a short span on the expectation of revival and enthusiasm, however the earnings are still to follow and do the justification.

Year 2015 may not be a year of strong broader gains in the indices, but still the upside movements would be seen in the sectors, which would reap the benefits of revival.

Important factors which will impact the markets in 2015 include:

Global and domestic market environment, Inflation, Interest rate scenario, Fiscal/trade scenario and Reform actions from the Modi government

We have collated a list of stocks from various brokerage firms, which they are positive on for the year 2015: