BULLS – Won’t Tire: Indian Equities
Set to Shine in 2023.
Indian equities have emerged as one of
the top-performing markets in 2023, joining the league of the best. The
weakness in the US dollar has once again made Indian and other emerging equity
markets highly attractive to foreign institutional investors. Furthermore, amid
fears of an economic recession in the US and sluggish demand in China, FIIs are
increasingly favoring the Indian equity market over China.
The bulls have tightened their grip on
the domestic stock markets, propelling benchmark equity indices to reach new
heights in July 2023, marking a successful beginning to the Q1FY24 earnings
season. On July 18, the benchmark BSE Sensex achieved an unprecedented
intra-day peak, surpassing the 67,000 mark, driven by a surge in FII inflows.
The Nifty 50 also rallied and crossed the 19,800 mark. This bullish sentiment
was further bolstered by robust financial results from IT majors like TCS and
HCL Technologies, acting as booster shots for the market.
Looking ahead, Nifty earnings are
expected to remain robust in Q1FY24, with significant contributions from
sectors like BFSI, automotive, and OMCs. Additionally, macroeconomic factors
are favorably positioned, including increased credit off-take, declining energy
prices, promising industrial activity, and diminishing recessionary fears.
Moreover, the global rate hike cycle is expected to plateau, which should bode
well for Indian markets.
India Inc. is currently delivering
impressive profits, and FII investments are flowing back to Indian shores.
Furthermore, the government's focus on infrastructure development presents
enticing opportunities for companies operating in this space, potentially
driving their stock prices higher. Additionally, the year 2023 is anticipated
to witness numerous companies going public to fund their growth plans, injecting
excitement into the market.
Considering these factors, we expect
the bull run to sustain throughout the entirety of 2023, and the Sensex may
even surpass market expectations, reaching the 75,000 mark. However, caution
and attentiveness in the market should be the key to investing.
Author: Ajit Singh
Founder
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Turtle | Graded Financial Services | AskCred.
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