Sensex nearly doubled during Nirmala Sitharaman's first tenure as FM. Next target: 1 lakh!

Sensex nearly doubled during Nirmala Sitharaman's first tenure as FM. Anand Rathi and market guru Raamdeo Agrawal predict the benchmark at 1 lakh level by FY28.

With Prime Minister Narendra Modi reposing faith in by giving her a second term as the country's , investors have welcomed policy continuity as during her first tenure has jumped about 93%.

When first took charge of the Finance Ministry on 31st May 2019 from an ailing Arun Jaitley, Sensex was around 39,700-level and hit a lifetime high above 77,000-mark in Monday's session before the portfolio allocation was announced.

The next target for Sensex is now at the much-awaited landmark of 1 lakh. According to predictions by Anand Rathi in the past, Sensex is likely to hit the 1 lakh milestone by the end of FY28 while market guru Raamdeo Agrawal had recently forecasted 1.5 lakh level in 2029 which looks doable if Sensex keeps on compounding at 15% every year and earnings growth helps it maintain current P/E levels of 25x.

Also read |

During Sitharaman’s tenure as FM, the stock market made several other records - $5 trillion market capitalisation milestone, the number of demat accounts crossed 15 crore mark and retail investors became strong enough to absorb most of FII selling.

The market heaved a sigh of relief after it was known that the ruling BJP has kept 25 out of 30 Cabinet ministries with itself. Key ministries like Defence, Home Affairs, Road Transport, Finance and External Affairs will see the same faces of BJP as in the previous term, which analysts say represents a sense of continuity.

Even when it comes to Minister of State (MoS) positions, 35 of the 41 ministers belong to the BJP.

A section of the Street was worried about the compromises the BJP would have to make after being forced to form a coalition government.

With Sitharaman’s reappointment, the focus on infra and continued fiscal consolidation should also continue, analysts at Nomura said.

"After the election outcome, the key investor concerns were about political stability and policy continuity. Any escalation of such concerns leading to a sharper fall in the markets could also adversely impact domestic flows, which have been resilient post COVID. Through the course of the past week, we think the concerns have abated. The composition of the cabinet over the weekend also indicates policy continuity at the moment," Nomura said.

The Japanese brokerage expects FII flows to improve as policy continuity is established.

Goldman Sachs analysts expect the new government to stick to the fiscal consolidation path with a continued thrust on infrastructure creation through more rail network, amidst a slight tilt towards more rural spending.

Street veteran Deven Choksey said Sitharaman’s reappointment as India’s finance minister in the new coalition government is “definitely a wise step” for keeping the focus on infrastructure development and exports.

Phillip Capital has retained a medium to long term positive stance on Indian macro and equities saying that the distribution of seats displays continuity at its best and equitable treatment of allies, which is a big plus.

The next big event for investors would be the Union Budget, which is likely to be presented in the first week of July 2024.

"The full budget in July will shed more light on the possibilities and scope of each ministries. Social inclination is widely anticipated however along with continuity in capex and earlier policies and reforms. In the third term of this coalition, with well experienced faces helming the key ministries, we see likelihood of incrementally positive/strong FII flows along with buoyant domestic flows," the brokerage said.

(Data Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Source: Stocks-Markets-Economic Times

Останні публікації
A Trump win would bring back the 'BoJ trade': JPMorgan
27.09.2024 - 14:00
US farmers call for vaccine option to fight bird flu as wildfowl migration begins
27.09.2024 - 14:00
Europe’s Banks are launching new product to break the Visa/Mastercard dominance
27.09.2024 - 14:00
Exclusive-Germany's finance minister underscores concern over Commerzbank takeover approach to Italy, say sources
27.09.2024 - 14:00
Wall Street banks see 7-10% upside left in China stocks
27.09.2024 - 14:00
Toyota to recall over 42,000 vehicles over loss of power brake assist, NHTSA says
27.09.2024 - 14:00
Citi sees risk into PepsiCo's earnings, says shares could fall
27.09.2024 - 14:00
India stocks lower at close of trade; Nifty 50 down 0.14%
27.09.2024 - 14:00
'After the Fed put, comes the China put:’ Barclays
27.09.2024 - 14:00
Mazda recalls over 77,000 MX-5 sports vehicles in US, NHTSA says
27.09.2024 - 14:00
Mercedes-Benz USA to recall over 27,000 vehicles over risk of engine stall, NHTSA says
27.09.2024 - 14:00
Exclusive-Thailand's pension fund earmarks $11.6 billion for global investment overhaul
27.09.2024 - 13:00
European stocks touch record high amid China-powered rally
27.09.2024 - 13:00
Factbox-More than 1.28 million Florida customers without power due to storm Helene
27.09.2024 - 13:00
Dollar General down as Citi downgrades stock on tough competitive positioning
27.09.2024 - 13:00

© Analytic DC. All Rights Reserved.

new
Торгові ідеї GOLD
Ласкаво просимо в чат підтримки!
*
*

Ваш запит успішно надіслано!
Скоро з вами зв′яжуться.