ETMarkets Survey: Happy Diwali for D-Street as Nifty50 seen at 21,000 by next Samvat
The benchmark Nifty50 is expected to scale 21,000-mark by the next Diwali, according to over 56% of the 16 respondents who participated in the survey conducted by ETMarkets on what the new year for Dalal Street will look like.
Since last Diwali, the 50-stock index has net gained 9.5%, and the 21000-level target for Nifty50 implies a somewhat similar quantum of gains from the current levels.
The bullish optimism among money managers for the next year comes despite the general elections on the anvil.
While events such as these will bring in short-term volatility, the structural growth story of India remains intact and this is likely to drive strong capital inflows, according to money managers.
Key Drivers
General elections will be one of the major events that will drive domestic equities.
Apart from this, market experts have pointed out several other factors that will have a bearing on the trajectory.
“The primary factors expected to drive the market in the new Samvat year include strong economic growth, favorable corporate earnings, and political stability,” said Shrey Jain, founder and CEO, SAS Online.
Barring export sectors such as information technology and commodity-related sectors, most domestic-linked sectors have reported strong earnings growth in the first half of FY24, and are widely expected to keep up the momentum in the rest of the year.
Further, the outlook for FY25 also looks promising, prompting analysts to upgrade estimates.
The other major factor that has played in favour of India is the strong macroeconomic growth amidst the slowdown in major global economies including the US, China, and Europe.
Experts believe that India will be among the fastest-growing economies and are seeing incremental
