Indian share industry benchmarks BSE Sensex and Nifty 50 delivered a stellar overall performance in the calendar year 2020, mirroring the international equity markets. Following a fall of almost 40 per cent in the course of February-March 2020, the headline indices recouped all losses and are now ruling at record higher levels. From the March low of 25,639, the 30-share Sensex climbed to an all-time higher of 47,897 points. While Nifty 50 scaled a record higher of 14,024.85, rallying almost double from the COVID low of 7,511 in March. Nifty took 26 trading sessions to climb to 14,000 from 13,000 points earlier, it took 32 sessions to attain 13,000 from 12,000 points.
Gaurav Garg, Head of Research, CapitalVia Global Research Ltd, expects a double-digit rally in the Nifty 50 index by the finish of the new year 2021. “On the back of increased retail participation, favorable policies by the government, demand resumption and fresh foreign inflows, Nifty may see a double digit rally by the end of 2021,” Garg told TheSpuzz Online.
All eyes on Union Budget, corporate earning
Market analysts think that calendar year 2021 will be marked with hopes of early roll-out of the COVID-19 vaccine, normalisation of activities and unperturbed development recovery. Market participants will track the vaccine roll-out and corporate earnings in the initially month and Union Budget 2021 in February. Jaideep Hansraj, MD & CEO, Kotak Securities, sees markets behaving differently in the initially and second half of year 2021. “We can expect Nifty to go anywhere between 14,000 and 15,000 range sometime in the first quarter of CY21,” Hansraj stated. He additional stated that the fourth-quarter earnings season might push markets into some type of consolidation phase post Union Budget 2021 presentation, and there might be time correction.
Nifty might finish at 13,500, Sensex at 46k in CY21
Hansraj stated that moderation in monetary policies and increasing yields situation in 2HCY21, might lead to imply reversion of valuations towards 10/15 year averages. “We expect Nifty-50 to end CY21 somewhere at 13,500 and BSE Sensex to end at 46,000,” he stated. While B Gopkumar, MD & CEO, Axis Securities believes calendar year 2021 to be a year of development. He sees markets to provide robust returns in 2021 on the back of close to double-digit GDP development expectations in 2021 and more than 30 per cent earnings development for India Inc. Gopkumar also expects Union Budget 2021 could be a blockbuster.
Markets across the globe have witnessed a dream rally in the course of the COVID-19 pandemic. According to an analyst, positive news triggers on the vaccine improvement front along with trillion dollars of funds pumped into the monetary method to assistance the international economy, have provided a enhance to the markets. “Going forward in 2021, the momentum is expected to continue but would be a stock-specific play. Also, the risk-reward ratio needs to be borne in mind as we could witness high volatility in 2021,” Aamar Deo Singh, Head, Advisory at Angel Broking.