Following the results of the US midterm elections, a wave of enthusiasm has swept through the Indian stock market. Just ahead of Diwali, the Sensex has once again crossed the 81,000-point mark, while the Nifty has also surpassed the 25,000-point level. Furthermore, expectations point toward even more significant shifts in both these indices.
Will the Sensex cross the 1 lakh mark?
According to Ganesh Dongre, AVP (Equity Research) at Anand Rathi, domestic institutional investors have provided robust support to the Indian stock market over the past two years, even as foreign institutional investors engaged in selling. Now, with the global situation improving and the prospect of foreign investors returning to the market, the Nifty could potentially see a rise of at least 20%. Ganesh Dongre has stated that the Nifty could reach above 30,000 points by the upcoming Diwali. In other words, based on current levels, the Nifty could rise by up to 5,000 points over the next year. Regarding the Sensex, Dongre estimates that under normal conditions, it could cross the 90,000-point mark. In a highly favorable scenario, the Sensex could reach a level of 1,05,000 points. Based on these projections, the Sensex could potentially see an additional gain of 20,000 points. Last December, the Sensex reached 86,159.02 points, which stands as its all-time high.
What is the reason behind this? Ganesh Dongre believes that the Indian stock market has strengthened following the results of the US midterm elections. The defeat of Donald Trump’s Republican Party and the significant victory of the Democrats in the US have brought about a shift in the global economic landscape. While pressure on the US dollar has intensified, a decline in crude oil prices has also provided support. Furthermore, investor interest in bonds is expected to wane, which increases the likelihood of capital from Foreign Portfolio Investors (FPIs) flowing into the Indian market. Status of Sensex and Nifty
Last Friday, the BSE’s 30-share benchmark Sensex rose by 1,718.01 points, or 2.17 percent, to close at an all-time high of 81,028.02. Meanwhile, the NSE’s 50-share benchmark Nifty also climbed 493.75 points, or 2.01 percent, to close at an all-time high of 25,030.35. This marked the highest level for the Nifty in nine months. Over the last seven consecutive trading sessions, the Sensex has gained 7,781.99 points, or 10.62 percent. Similarly, the Nifty has risen by 2,331.5 points, or 10.27 percent. This week, the BSE Sensex recorded a strong gain of 6,568.49 points, or 8.82 percent, while the NSE Nifty rose by 1,977.25 points, or 8.57 percent.
