Indian equity benchmark indices reached record highs on Monday, with the Nifty 50 gaining 3.58 percent (807.20 points) to 23,337.70 and the Sensex rising 3.55 percent (2,621.98 points) to 76,583.30. Similarly, the Nifty Bank opened above 50,000 for the first time ever following exit polls for 2024 Loksabha results.
Investor sentiment was lifted by Saturday’s exit polls, causing a slight decline in Indian government bond yields. The benchmark 10-year yield decreased to 6.9541 percent from its previous close of 6.9809 percent.
At 11:10 am, both the Sensex and Nifty 50 continued their bull run, driven by strong investor sentiment. The Sensex increased by 2,069.27 points (2.80 percent) to 76,030.58, while the Nifty 50 rose by 626.55 points (2.78 percent) to 23,157.25.
According to analysts, trading in the equity market this week will primarily be influenced by two major events, the general election results on June 4 and the Reserve Bank of India’s interest rate decision to be announced on June 7.
Exit polls released on Saturday suggest that Prime Minister Narendra Modi is likely to secure a third consecutive term, with the BJP-led NDA expected to win between 350 and 401 seats.
Over the past five years, the Nifty 50 index has surged by 95%, rising from 11,870 to its current value of 23,150.90. Additionally, the Nifty index has experienced 3% gain in the last three months.
Prashant Khemka, Founder of White Oak Capital Management, stated in an interview with CNBC TV18 that he anticipates the Nifty index to reach 50,000 within the next five years, more than doubling its current level.
Khemka also noted that small-cap and mid-cap stocks are likely to outperform during this period, particularly on days with significant upward movement.
Additionally, Khemka predicts that the exit polls indicating a strong victory for Prime Minister Narendra Modi and the BJP-led National Democratic Alliance (NDA) in the 2024 Lok Sabha elections will prompt foreign investors, who have been hesitant, to re-enter the market promptly.
In March 2024, Raamdeo Agrawal, Chairman & Co-Founder of Motilal Oswal Financial Services, emphasized the significance of maintaining resilience for wealth accumulation.
During an interview with Business Today TV, he projected that the benchmark equity index NSE Nifty could potentially hit 50,000 by 2030-31 and reach 75,000 within the next decade. Agrawal pointed to the ongoing broad-based economic recovery to support his forecast.
He elaborated that with a compounded growth rate of 15% over the next five years, Nifty 50 could potentially hit around 44,000-45,000. As a result, he foresees Nifty achieving the 50,000 mark by 2030-2031.
Written by Omkar Chitnis
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