Market Mavens Forecast a Nifty Climb to Mount 9K In ET Poll of 30 top money managers & research heads, participants praise Jaitley’s Budget, point to uncertainty over corporate earnings recovery & developments in Trump’s America
Mumbai: Investors’ confidence in the stock market has been reinforced after the Budget, but a bumpy road awaits them amid uncertainty over corporate earnings recovery and developments in the US. Majority of the 30 money managers and research heads polled by ET expect the Nifty to gain 3-5% till June 30. Asian Paints, Bank of Baroda, HDFC Bank, State Bank of India and Sun Pharma are among the blue chips that could be outperformers in 2017, according to them. Most of the poll participants assigned a rating of between 6 and 8 points out of 10 to the Budget. The stock market briefly hit a four-month high on Thursday, a day after the Budget, which pro- pelled the indices 1.8%. The Nifty closed at 8,734.25 and the Sensex ended at 28,226.61 on Thursday. Sentiment was nervous as the US Federal Reserve on Wednesday night signalled that it remained on course for further monetary tightening in 2017 while keeping interest rates unchanged — on expected lines. Over 80% of the participants said the Nifty could rise to 9,0009,200 before June end. But there could be sharp gyrations on the way up. While the fourth-quarter results could show the actual effect of demonetisation, the out- come of Uttar Pradesh elections will be a test of Bharatiya Janata Party’s popularity.
“The next six months are set to be volatile because there are various events that need to unfold, beginning with the fourth-quarter results, the results of the UP elections, and the general instability from Donald Trump’s policies,” said Dharmesh Mehta, managing director at Axis Capital. Fund managers and analysts expect the index to soar further by the year-end though they are less unanimous about their Nifty targets for December.