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Dec 19, 2023 09:32 PM IST
Sensex and Nifty can see a massive spike of up to 8-10 percent after the results of the Lok Sabha polls 2024 are announced, according to HDFC Securities.
After crossing the 71,000 and 21,000 mark respectively, the benchmark Sensex and Nifty might be on track to touch another record high. It is likely that the Indian markets will rise by 8-10 percent in 2024, as per a report by HDFC Securities.
HDFC Solutions has predicted that Nifty and Sensex can rise by 10 percent in 2024.(Bloomberg) Brokerage HDFC Securities, in its outlook for equity markets in 2024, said that while a hike is expected in the initial months of 2024, the markets in the next year won't see linear growth. It is predicted that the markets will remain volatile.
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About the Nifty target for end-2024, HDFC Securities' head of retail research Deepak Jasani said he expects a rise of 8-10 per cent from the current levels. This comes after Nifty touched its all-time high earlier this month, crossing the 21,000 points mark.
Both Sensex and Nifty approached their all time high shortly after the results of the assembly elections of five states were announced on December 3 and 4, leading to a stellar week on the markets.
Impact of Lok Sabha elections 2024 on Nifty, Sensex
To a question about the elections, the company's managing director and chief executive Dhiraj Relli said the outcome of the general election will have a "limited impact" on the market, despite the predicted rise in the Nifty index.
Relli said, regarding the HDFC Securities report, that the elections can have a lukewarm impact as investors have already started pricing in the incumbent BJP retaining power after the impressive win in the state polls, and political stability because of that.
The report also said that the market fluctuations will be beyond the election results in 2024, and the softening of inflation and rate cuts by RBI can also lead to a spike in the Indian markets in the second half of the year.
Inflation will cool down to as low as 2.5 per cent in the second half of the new year which will lead to a shift of stance by the central bank and also cuts of 0.50 per cent in rates, the brokerage said.
Further, it predicted that small and mid-caps will offer limited upside for the investors, while large caps will be able to give major returns, manipulating the markets more.
(With inputs from PTI)
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