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

The Economic Times - - Front Page - Our Bu­reau

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.

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