Even as the market waited with bated breath for the Nifty to cross the historical level of 10,000 points on Monday and were left slightly disappointed at the end of the day, investor Porinju Veliyath prophesied that not only will Nifty hit the milestone in the coming days but the five-digit level will become a new low for it as Indian equity markets enter a new growth orbit. “Nifty to make a fresh 5-digit bottom this week; a bottom for the coming decade. India entering a new growth orbit. Bullish on #ChangingIndia”: Porinju Veliyath tweeted on Monday.
The Nifty50 has seen a rally to an all time high of 9,982.05, buoyed by gains in the oil and gas, banking, and IT stocks which generated a lot of buyer interest after better than expected financial results. Gains in Reliance Industries Ltd (RIL), FMCG major ITC, Infosys, ICICI Bank and SBI helped the indices scale new peaks in early trade. The day ended with 29 stocks advancing with players such as Bharti Airtel, Reliance Industries, HDFC Bank, Indiabulls Housing Finance Ltd. leading the pack with gains of more than 2%.
It has indeed been a roller coaster ride for the benchmark index as the Nifty 50 had seen a sharp correction to below 8,000 levels in December 2016. However, the new year 2017 brought with it fresh hopes, and the benchmark didn’t disappoint. Nifty recovered more than 700 points in less than a month and was trading at near 8,700 levels at the end of January 2017. There has been no looking back ever since.
Nifty quickly topped the psychological mark of 9,000 in early March 2017. In the later half of May the benchmark was trading at near 9,500 levels. Today, it ended at a record closing high of 9,966.40, just 34 points shy of the magical 5 digit figure.
The BSE Sensex also scaled a new peak, and closed at a new life high of 32,245.87 on Monday. It zoomed up by nearly 217 points from the previous close.
With results of heavyweights such as ITC, L&T, Axis Bank, Maruti Suzuki, etc, awaited, this could be the decisive week for the markets as any positive surprises there may finally take Nifty to beyond 10,000 points.
Earlier last month, Ridham Desai, MD, Morgan Stanley, said in an interview with CNBC-TV18 that he expects NSE’s Nifty index to reach 30,000 points in the next five years, on the back of renewed consumption, greatly improved exports and infrastructure spending by the government. This roughly works out to a CAGR of 25.33% for the Nifty over the next five years. Last week, Yogesh Nagaonkar, Fund Manager, Bonanza PMS, told FE Online that he is bullish on Indian equity markets for near term, pointing out to valuations that are still attractive. “We don’t see any macro concerns,” he said, adding that one should add good quality companies in the portfolio.