V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, anticipates that the positive market momentum, which propelled the Nifty up by 6 per cent in November, is likely to persist. He bases this forecast on the encouraging incoming data and favorable news.
Vijayakumar points out the Q2 FY24 GDP growth rate of 7.6 per cent, surpassing initial expectations. Notably, the impressive growth rates of 13.9 per cent in manufacturing and 13.3 per cent in construction have caught attention. He believes that these figures have the potential to elevate the FY24 GDP growth rate beyond 6.8 per cent, a significant increase compared to the RBI’s projection of 6.5 per cent.
In addition, the positive outcomes from exit polls hint at the probability of sustained political stability post the General elections, a factor that the market is likely to favor and appreciate.
Vijayakumar predicts that the bullish sentiment will drive attention towards capital goods stocks such as L&T and other construction-related stocks. Cement stocks are also expected to witness renewed buying interest, and the automotive sector is projected to sustain its positive performance. As a result, the Nifty index is poised to reach record highs.
The BSE Sensex recently soared past the 67,000-point milestone, surging by 457 points and trading at 67,446 points. Stocks like NTPC have surged by more than 4 per cent, reflecting the overall market momentum and investor confidence in various sectors.
(With Agency Inputs)