Global liquidity will continue to drive Indian Markets: Ajay Bagga

In a chat with ET Now, Ajay Bagga, Market Expert, shares his views on the markets. Edited Excerpts:

ET Now: Are you optimistic on the way the market behaves in 2015 after the 30 percent and more rise in the Nifty in calendar year 2014?

Ajay Bagga: We have to look at the last five year's return. The 30% over last year was not something really out of ordinary. It as coming after five years of non-performance of the market. So overall the market multiples are not aggressive. They are still below historical averages. We have not really seen the economy turning around very much. There has been a bottoming of the economy. So the 30% was in anticipation. This year again will be largely in anticipation. It is not going to be an year where the economy starts growing at 7-8%. It will grow at 1% more on an average and then pick up by the last quarter of 2015. This is what we are really forecasting. A good year is coming for the market again due to global liquidity being maintained, and with ECB, coming in with the QE January 22nd meeting. The Japanese QE continuing and the Fed taking very measured rate hikes will also add to it. The Fed rates are likely to go for 50 bps hike over next year, but not more than that. Overall the global liquidity will continue to drive India as a reform oriented market with good future potential.

ET Now: Are we expecting another 20% at least in 2015 for the Nifty going past 10,000.

Ajay Bagga: You will see a 10,000 number on the Nifty within the first half itself. I am anticipating run up before the budget. A lot of positions will get formed before that. It is good time to get into the market.