Nifty 50 At 22,000: What Top Analysts Say
The index surged to a lifetime high of 22,076.25 points during early trade, with analysts expecting this momentum to continue.
Nifty 50 breached a fresh record on Monday after it scaled the milestone of 22,000.
The index has jumped nearly 1.44% so far this year to hit a fresh high. It took the Nifty 50 index 26 sessions to cover 1,000 points from Dec. 8, when it first hit 21,000, compared with the 61 sessions it took to travel from 20,000 to 21,000.
The index surged to a lifetime high of 22,076.25 points during early trade, with analysts expecting this momentum to continue.
Meanwhile, the S&P BSE Sensex crossed the 73,000 mark for the first time on Monday. It took 14 sessions to rise 1,000 points from 72,000.
Foreign portfolio investors kicked off the new year cautiously, investing Rs 3,864 crore in Indian equities in the first two weeks of January. This move reflects the cautious approach taken by investors amid increasing geopolitical tensions across the globe.
Here's What Analysts Have To Say
'Markets Likely To Remain Buoyant, Correction Can Come Anytime'
Vikas Khemani, Founder, Carnelian Capital
The continuation of India's story is being witnessed, given the broad-based economic recovery. When corporate earnings are robust and liquidity is strong, both domestically and internationally, there is no reason for markets to remain at their previous levels.
"The market is likely to remain buoyant; corrections can come at any time," he told NDTV Profit.
From a long-term perspective, the India story is considered highly favorable. The possibility of a market correction exists at any time. The performance of large caps may improve when foreign institutional investor infuse funds into the market, he said.
'Still A Bit Of Euphoria In The Market'
Gautam Shah, Founder & Chief Strategist At Goldilocks Premium Research
The price actions have been as clean as they can get, with shallow corrections observed consistently. The recent strong performance of the markets in the last 10 days is attributed to the collective success of the banks, Reliance, and IT sectors.
"I think this will continue, but there is still a bit of euphoria in the market, so there could be rotational corrections," he told NDTV Profit.
"There is immense opportunity in different sectors," he said.
'Global Factors Continue To Be In Favour Of India'
A. Balasubramanian, Managing Director and CEO, Aditya Birla Sun Life MF
The market's momentum appears poised to persist. Global factors remain favourable for India, particularly with China's ongoing economic struggles. Anticipated for 2024 is an upswing in spending directed towards the IT sector.
The capital goods sector is expected to sustain its positive performance, along with the automotive industry. Significant outperformance is projected for these sectors.
Spending is also poised to rise, contributing to consumption-led growth. Additionally, the government continues to push up public sector capital expenditure, said Balasubramanian.
'The Support Will Move Higher To 21,700 Levels'
Vikas Jain, Senior Research Analyst at Reliance Securities
The Nifty-50 opened higher above the resistance of 21,700 levels and continued its positive momentum to scale an all-time high.
On the downside, now the support will move higher to 21,700 levels, and the current breakout can extend up to 22,300 levels over the next few days, he said.
