Market remains bullish; Nifty may try breaching 18,600 level
With no significant domestic events likely this week, the equity markets may take cue from global events – especially from the development in the US, where the debt ceiling crisis is still unfolding.
NEW DELHI: With no significant domestic events likely this week, the equity markets may take cue from global events – especially from the development in the US, where the debt ceiling crisis is still unfolding. The 50-stock NSE index Nifty, which closed shy of 18,500 level on Friday, may try to breach the 18,600 levels this week.
The Sensex, which closed at 62,501 on Friday last, may target 63,000 levels and beyond. Buoyed by the positive monsoon prediction by IMD and a decent Q4FY23 earnings, equity markets made decent gains last week. The Nifty gained 249 points or 1.36%, while the BSE Sensex gained around 0.9% in the past week. BSE Midcap Index gained 2.15%, while BSE SmallCap Index gained 0.68%.
The positive monsoon prediction by IMD has boosted market sentiment, leading to gains in various sectors, says Prashanth Tapse, vice-president (Research), Mehta Equities. IMD has predicted a slow start but overall, it sees a normal monsoon this year. Indian markets were also boosted by decent Q4 earnings numbers. “Indian equity markets were buoyed by a decent Q4FY23 earnings print, even though the quality of earnings was weak,” says Shrikant Chouhan, Head of Equities Research (Retail), Kotak Securities Ltd. According to him, going forward, the equity markets will focus on the macro trends.
“Markets going ahead may be dominated by global news flows and steps taken by different governments to tackle their economy,” added Chauhan. Global markets were mixed last week as concerns around the US debt ceiling and a weak global growth outlook persisted. According to Chauhan, Indian equity markets remained concerned about growth prospects, even as inflation continued its downward trajectory both globally and domestically.
According to Aditi Nayar, chief economist, Head of Research & Outreach, ICRA Ltd, the GDP growth may moderate to 6% in FY2024, with a downside risk of up to 50 bps from the materialisation of El Nino conditions, even as frontloaded capex by the GoI and the states and a rapid execution of infra projects could provide an upside. However, experts feel the overall market outlook remains optimistic, with the Nifty aiming for new highs while maintaining support at 18200.
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