Sustained inflows by foreign institutional investors (FIIs) coupled with earning upgrades, robust monsoon and Seventh Pay Commission hike, are likely to push benchmark indices BSE Sensex and NSE Nifty higher from here onwards. Market experts like Prakash Diwan of prakashdiwan.in and Pankaj Pandey of ICICI Securities are bullish on further movement of Indian equity markets. Since the beginning of the ongoing financial year, the 30-share index has risen 11 per cent to 28,059.94 on August 24 from 25,269.64 on April 1. Nifty index soared 12.15 per cent during the same period. The index jumped from 7,713.05 to 8,650.30 during the same period.
Foreign institutional investors have poured Rs 35,442.57 crore (net) in the Indian equity markets during April 1 to August 24. Prakash Diwan believes Nifty can touch 9,500 by December-end on account of earning upgrades going forward and rising consumption demand. “Sensex may hit 31,000-mark by the end of the ongoing calendar year,” he added.
Among the sectoral indices on BSE, Metal index (up 33.91 per cent), Realty index (up 24.89 per cent), Bankex (up 20.41 per cent), Oil & Gas (up 19.40 per cent), Auo (up 18.72 per cent), Power (17.08 per cent) and Capital Goods (up 14.73 per cent) have outperformed benchmark indices since the beginning of the ongoing financial year till August 24. Diwan said, “Sectors such as FMCG, Auto and Capital Goods will continue to outperform broader markets this year.”
Pankaj Pandey said, “We see Sensex at 30,000 level and Nifty at 9,100 in the next 12 months. He is also bullish on sectors like FMCG, Auto, Capital Goods. “Cement will also outperform markets in the ongoing market conditions,” he added.
The BSE Midcap and Smallcap index have risen 22.38 per cent and 17.63 per cent, respectively, between April 1 and August 24.