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Stocks set to enter bull phase: UTI chief

Our Bureau

MUMBAI, July 3

STOCK markets are expected to be buoyant this year with corporates exuding strong business confidence and the economy showing signs of sustained growth on the back of a good monsoon, said Mr. P.S. Subramanyam, Chairman, Unit Trust of India.

He said he expected the BSE Sensex to touch the 6,000-mark again by Deepavali.

Presenting UTI's report card for the year ended June 2000 to newspersons here on Monday, Mr. Subramanyam said the economy had come out of recession and is poised to grow briskly. The stock market is again set to enter the bull orbit.

The UTI Chairman said the Indian capital markets are looking cheerful again after being off-colour in the past few months. FIIs are back in the market and investors have come to realise that there is value for money. Cyclical stocks are back in favour. T he UTI chief also expected the software, media, and services sectors to do well.

Most indicators are pointing at an economy that has found the growth path. ``The rupee is stable, inflation is under control, the stock market upbeat, the monsoon is turning out to be good -- which is a key factor for the country -- industrial growth is picking up, and exports are looking up. All these factors augur well for the economy,'' he said.

On the direction that interest rates would take, Mr. Subramanyam said ``there might be some horizontal movement, but a secular rise in interest rates is not likely,'' he said.