Sensex to cross 16,000-mark this fiscal: Sebi member

In a rare instance of crystal ball gazing by a senior official of the capital market regulator, Madhukar, wholetime member of the Securities and Exchange Board of India, on Friday said the BSE Sensex could cross 16,000 points during the current financial year given the robust economic conditions.

Speaking at a function organised on the occasion of commencement of business by the corporatised BSE, Madhukar said, "The Sensex is set to cross the 8,000-point mark in a few days. I think it will cross the 16,000-point mark during the current year itself."

The BSE Sensex crossed 7,900 on Thursday and closed at 7,780.76 on Friday after losing 30.57 points.

Madhukar explained that good economic fundamentals and improved adherence to corporate governance principles by companies and dissemination of knowledge to all sections of investors could take the market to unprecedented levels.

He also suggested that the BSE should go for a good strategic partner- either overseas or domestic.

Following corporatisaion, the exchange has various options to dilute brokers' holding to 51 per cent over the next one year, including direct divestment, an initial public offer and roping in a strategic partner.

However, it has not yet taken any decision on the how the brokers' stake will be diluted.

Another Sebi Wholetime Member G Anantharaman said the new entity should utilise this opportunities to overcome the challenges posed by demutualisation in the years to come.

As a self-regulatory organisation and an implementing agency of Sebi regulations, the new look BSE would have ample opportunities for growth, he said.