Markets may extend rally this month
Markets may continue their winning run in May after registering gains in the past three months as investors’ sentiment are upbeat amid India’s promising growth prospects, the current government’s potential re-election in the ongoing polls and robust participation from domestic investors, analysts said.
The 30-share BSE Sensex had declined 0.67% in the month of January this year.
However, markets charted a strong recovery path from February onwards.
In February, the BSE benchmark climbed 1.04%, while it jumped 1.58% in March. In
April, the bellwether index advanced 1.12%.
“Overall, the markets are anticipated to maintain their upward trend, backed by robust inflows and participation from both domestic institutions and individual investors.
“Going forward, if the corporate earnings of the remaining companies display a positive sentiment then the markets are likely to continue their bullish sentiment,” Arvinder Singh Nanda, senior vice-president of Master Capital Service Ltd, said.
“Positive market sentiment is anticipated to persist if the Middle East tensions lessen, earnings remain steady, and the Chinese economy continues to move towards resurgence,” Nanda added.“Markets have surged to record highs due to various factors. Firstly, the positive market sentiment, driven by strong prospects for the Indian economy, has bolstered investors’ confidence.
“Expectations of imminent rate cuts have further encouraged investors to buy Indian stocks despite recent corrections. We forecast the Nifty 50 to maintain a positive bias, considering historical trends of rallies during general election years and projecting a gradual ascent,” Suman Bannerjee, CIO of hedge fund Hedonova, said.
The BSE Sensex hit its alltime peak of 75,124.28 on 9 April this year. The index breached the historic 75,000 mark for the first time on the same day.
The BSE Sensex hit its all-time peak on 9 April. The index also breached the 75,000 mark the same day