What lies ahead for the market?

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, says that the market momentum which pushed the Nifty up by 6% in November is likely to be sustained following strong macro data and positive news.

“First, the Q2 FY24 GDP growth rate at 7.6% has surpassed expectations. Particularly, the 13.9% growth in manufacturing and 13.3% growth in construction are impressive numbers. This has the potential to push the FY24 GDP growth rate to above 6.8%, significantly higher than the RBI’s projection of 6.5%. Second, the exit polls results indicate a high possibility of political stability after the General elections. The market will appreciate this,” he says.

“Since manufacturing and construction have done well, the bulls will focus on capital goods stocks like L&T and construction-related stocks. Cement stocks may attract renewed buying interest. Autos will continue to do well. Nifty is set to move to record highs," Vijayakumar adds.

Parth Nyati, Founder of Tradingo, says the Indian equity market may continue its momentum and outperform other global peers, backed by the strong fundamentals and under-ownership of foreign institutional investors (FIIs). In terms of level, 21,000 looks like an easy task in the near term for the Nifty.

“FIIs may become net buyers amid rising U.S. bond yields and the strong macroeconomics of India. State election results may create some kind of volatility, but we are preparing ourselves for a pre-election rally,” Nyati says.

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Sensex, Nifty hit fresh lifetime highs! What lies ahead for the market?