As 2024 progresses, market dynamics and macroeconomic factors will play a crucial role in determining whether the Nifty 50 can bridge the gap and fulfil the expectations set by some brokerage firms.
April 11, 2024 / 03:40 PM IST
Investors are eyeing Nifty 50's continued upward trajectory with keen interest
NSE Nifty 50 has made remarkable strides, already surpassing the year-end targets set by two brokerage firms for December 2024, and it's only April. With the current market scenario showcasing robust momentum, investors are eyeing the index's continued upward trajectory with keen interest.
UBS had set a target of 20,000 for the Nifty 50 by the end of 2024, while Kotak Securities had a slightly more optimistic outlook with a target of 21,834. However, the index has already exceeded these projections, demonstrating the strength of the current bull run.
On April 10, both Nifty 50 and Sensex closed 0.5 percent higher at 22,753.80 and 75,038.15, respectively.
The surge in Nifty 50 not only exceeded the targets set by UBS and Kotak Securities but also brought it within striking distance of the target set by Axis Securities and Goldman Sachs.
Analysts attribute the surge in Nifty 50 to positive economic indicators, expectations of strong corporate earnings, and favourable global market conditions.
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Axis Securities had set a target of 23,000 for the Nifty 50 by December 2024, while Goldman Sachs aimed at 23,500. With the Nifty 50 currently hovering around the 22,750 mark, it is 1 percent and 3 percent away from reaching the projections put forth by these brokerage firms.
This indicates the market's resilience and underscores the prevailing optimism among investors regarding India's economic prospects. As the Nifty 50 inches closer to these targets, it reinforces the growing confidence in the Indian equity market and highlights the potential for further gains in the days ahead. Market experts expect the 50-stock index to continue making new highs in the coming days, as the bullish undertone remains intact.
While the targets set by Jefferies, Nomura India, ICICIDirect, and Prabhudas Lilladher indicate their bullish outlook on the market, the Nifty 50 still has a considerable distance to go to meet these targets.
Also Read |India vs the world: Nifty outpaces China, Japan, Korea indices; will the outperformance continue?
Brokerages expect Nifty 50 to rise driven by improvements in foreign inflows throughout 2024, recovery in capex cycle (housing, corporate, and government), declining yields, moderate global economic growth, favorable oil and commodity prices, and positive outcomes in the 2024 general elections.
However, a peaking dollar, prolonged elevated commodity or oil prices, unfavourable election results, persistent inflation, higher yields, or a hard landing scenario, could lead to increased risk premiums and reduced valuations, brokerages said.
Nifty 50's strong performance in recent months, coupled with positive economic indicators and investor sentiment, may pave the way for it to gradually inch closer to the lofty targets set by some brokerages. As 2024 progresses, market dynamics and macroeconomic factors will play a crucial role in determining whether the Nifty 50 can bridge the gap and fulfil the expectations set by some brokerage firms.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Neesh*ta Beura
first published: Apr 11, 2024 03:40 pm
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