Observing that investor pessimism in the country might be "overdone", German brokerage Deutsche Bank today predicted that the BSE benchmark Sensex would close the year at 22,500 points.
"We believe investor pessimism on India may be overdone," Deutsche Bank said in a note, giving the target of 22,500 for the Sensex, which closed at 54 points today at 0.40 per cent at 18,661 points, the seventh successive loss.
It cited continued action and commitment from the Government "despite fears of policy taking a backseat to politics" and gave examples of decisions like clearance given to five oil and gas exploration proposals entailing an investment of $ 9 billion, rationalising FII investments in debt etc as reform measures."With legislative manoeuvrability constrained and political rhetoric expected to rise as we head closer to national elections, government policy action will likely shift towards executive decisions, which don't need parliamentary approvals," the report said.