Mumbai: National Stock Exchange (NSE) benchmark index – Nifty 50 – is expected to make history by setting a new new record in the Indian stock market. Despite the current volatile situation in the domestic equity market, NSE Nifty, which is an index of 50 company shares, is projected to scale a fresh peak of 28,000 points. Currently Nifty is trading at the level of 24,500 to 25,500 points.
Brokerage firm PL Capital projected that Nifty 50 could hit 27,867 levels over the next 12 months. The brokerage house stated that the broader index is likely to hit the mentioned target as it will be driven by a combination of resilient sectors and cautious optimism amid geopolitical uncertainties.
PTI reported that despite the uncertainty all over the world, the Indian stock market is witnessing a positive momentum. Investors are cautiously trading, however, they are optimistic on the strength of the upcoming festive season and economic growth etc.
PL Capital emphasised that there is immense potential in e-commerce, telecom port, hospital, tourism, renewable energy, capital goods, infrastructure sectors in the country. And tehse reasons are contributing to the optimism of investors. If these sectors should be kept an eye on, because they can give the right valuation to the market.
The brokerage house said the demand for staples is showing recovery in rural belts, while prolonged monsoon rains could weigh on Q2 earnings of the companies. The PL Capital report stated that the spending is expected to remain healthy in jewellery, two-wheelers, travel, and housing. It, however, said that quick-service restaurants (QSR), building materials, apparel, footwear, and passenger vehicles (PV) may continue to face challenges.
The brokerage firm also predicted that infrastructure spending and project ordering to increase, however, it warned that assembly elections in Jharkhand, Maharashtra and Delhi could lead to some potential volatility in FY25.
PL Capital noted that valuations have shifted toward defensive sectors like consumer durables, FMCG, pharma, and IT services, which have seen a strong rebound. The brokerage highlighted that the gap in returns between large-cap and small-cap indices remains larger over longer duration.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO and Mutual Funds.)
Comments are closed.