Follow my blog with Bloglovin
Monday , 20 November 2017
Breaking News

NSE Nifty has potential to sustain beyond 10k: Experts

Mumbai, July 25 (IANS) The key Indian equity index — NSE Nifty 50 — has the potential to sustain beyond the 10,000-point mark, contingent on healthy quarterly results outcome, experts opined on Tuesday.

The optimism over the continued uptrend on NSE Nifty comes after the index breached the 10,000 points mark during the early-morning trade session on Tuesday.

In contrast to its opening rise, the NSE Nifty closed at 9,964.55 points, marginally lower by 1.85 points or 0.02 per cent from its previous close.

The wider Nifty of the National Stock Exchange (NSE) touched a high of 10,011.30 points and a low of 9,949.10 points.

“Nifty in this up move has touched 10,000 points and could rise some more by the middle or end of August 2017 by when we feel it would be ready for some reasonable correction,” Deepak Jasani, Head of Retail Research, HDFC Securities, told IANS.

“While optically the markets may seem to be expensive going by historical standards, bulls believe that P/E multiples are inversely correlated with the cost of capital.”

According to Vinod Nair, Head of Research, Geojit Financial Services, a decisive move above 10,000 points mark will depend on the outcome of “Q1 results and stability in global market”.

“On YTD basis market has given a stupendous return of 22 per cent supported by government reforms, benign interest rate and GST rollout, which provide stability for further expectation,” Nair said.

The rally has largely been liquidity driven with macro indicators, reforms and stable political atmosphere luring global funds into the index.

According to the NSE, the institutional category has pumped in over Rs 160,000 crore into the domestic markets year-to-date, thanks to expectations of accelerated pace of reforms.

“The momentum for equity market is still strong on the upside but some caution has crept in ahead of two-day Federal Reserve meeting that will begin tonight,” Dhruv Desai, Director and Chief Operating Officer of Tradebulls, told IANS.

“The expectation is that the US Fed will keep its interest rate intact but the commentary will give idea about further tightening of monetary policy. Corporate earnings until now has not disappointed and so after US Fed’s event, market may again look to scale new highs.”

–IANS
rv/vt
Post Source: Ians feed

Comments are closed.

Scroll To Top
badge