2024: Equity market set for eventful journey on Lok Sabha polls, interest rate trajectory
Indian equities are set for an eventful journey in 2024, with a slew of local and global cues — varying from interest rates to Lok Sabha polls to geopolitical happenings. Analysts are of the view that the bull run in the domestic equity market will continue, and over the next 3-6 months, the benchmark indices — Sensex and Nifty — could climb up to 7%.
In 2023, the 30-share BSE Sensex jumped 11,399.52 points or 18.73%, and the NSE Nifty climbed 3,626.1 points or 20%. Lok Sabha elections, the US Presidential polls, the trajectory of interest rates, particularly in the US and India, inflation trends and geopolitical situation will be the key factors for the stock market, analysts opined.
Experts said the return of the BJP government with a majority in the 2024 general elections is a pivotal factor on the market's wishlist for the new year. As political stability plays a significant role in shaping market dynamics, the market's optimism hinges on a smooth and decisive outcome in the upcoming elections, fostering an environment conducive to sustained economic growth and prosperity in 2024, an expert said.
A note by Motilal Oswal Broking and Distribution said that Lok Sabha elections and the first budget post-election would be most important on the domestic front. "We expect market sentiment to strengthen further as the ongoing pre-election rally is likely to continue.
Any rate cut would provide an additional boost to the market," it said. Dalal Street investors added a whopping ₹81.90 lakh crore to their wealth in 2023 amid a raft of positive factors, including strong domestic macroeconomic fundamentals, political stability owing to the BJP's success in recent elections, optimistic corporate earnings outlook, signals from the
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