Good Time To Enter Markets As Growth Story Will Continue, Say Analysts
Analysts foresee continued growth in the markets, suggesting it's a good time for investors to enter.
The markets, which experienced significant fluctuations throughout the week, have rebounded from the losses incurred on the counting day and have achieved their highest closing to date.
Market analysts expect further growth in the indices and suggest that now is an opportune moment for investors to enter the market.
"We believe that this is as good a time as any to enter markets. (If) you do it in a staggered manner, you will get opportunities, we believe. But the long-term story, I think, is definitely back on track," Unmesh Sharma, head of institutional equities at HDFC Securities, told NDTV Profit.
Aditya Shah, founder of Hercules Advisors, said that he is sure that the markets will continue to grow in the long-term, especially now that the Narendra Modi-led NDA is going to take oath on Sunday. He is bullish despite aggressive short-term valuations, he said.
On the other hand, Aditya Agarwala, head of research and investments at Invest4edu, said, "I don't see a runaway rally in the market." The markets might see some profit-booking on Monday, despite some exuberance in the markets during the opening."
On Friday, the NSE Nifty 50 closed 468.75 points, or 2.05%, up at 23,290.15, while the S&P BSE Sensex ended 1,618.85 points, or 2.16%, higher at 76,693.36.
During the day, the Sensex also hit an intraday high of 76,795.31. On a weekly basis, the Nifty gained 3.37% and the Sensex gained 3.69%.
In terms of the Nifty IT index's rise of over 3% on Friday, Shah said that the IT sector needs a year to stabilise its orders. While being positive on some large-cap IT stocks, he said that valuations in the IT space are still aggressive.
Agarwala is also of the view that one must stay invested in the IT sector. "There are some pockets that, once played out, can deliver profit." For investors who don't have IT stocks in their portfolio, his advice was to look for a dip and then enter the sector.
According to Shah, the IT sector has now become a lot more stable. While being positive about the IT sector, he said real estate and consumer durables are a few other segments that will continue to outperform.
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The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.
