Modi’s Budget to send India’s soaring stocks higher: Survey
government spending and continued momentum in corporate earnings, according to market watchers.
The upcoming government budget will likely boost consumer spending and infrastructure building, which bode well for businesses, strategists and investors surveyed by Bloomberg said. More than half of the 24 respondents estimated that the NSE Nifty 50 Index may advance up to 26,000 points by the end of 2024, while one predicted the gauge can climb even more.
The benchmark index has risen 12% so far this year to a record.
A diminished majority for Prime Minister Narendra Modi-led Bharatiya Janata Party in the recent elections has prompted investors to raise bets in the consumer sector on expectations the government will shift toward more populist measures to shore up support. An early monsoon also boosted the prospects for companies involved with crops such as rice, corn and soybeans.
“Corporate earnings for the year gone by had been robust on the back of margin tailwinds and may grow above trend in financial year 2025, keeping India’s medium-term growth story intact,” said Bino Pathiparampil, head of research at Mumbai-based Elara Capital.
Of those surveyed, 13 projected earnings growth for Nifty components to remain robust, while five others said optimism on future earnings was overdone.
Analysts estimated earnings per share of MSCI India Index’s companies for all of calendar year 2024 to increase 15.6% on-year, data compiled by Bloomberg Intelligence showed. In comparison, Chinese firms are expected to post a 10%
