2 min read 09 Apr 2024, 12:56 PM IST Trade Now
Sensex crossed the 75,000 level for the first time and the Nifty 50 jumped to a record-high level of above 22,700, gaining half a percent each on Tuesday.
The Indian stock market began the financial year 2024-2025 on a robust note with both the benchmark indices Sensex and Nifty 50 scaling fresh record highs. In the seven sessions of April month, both the frontline indices have risen nearly 2% each.
On Tuesday, the benchmark Sensex crossed the 75,000 level for the first time and the Nifty 50 jumped to a record-high level of above 22,700, gaining half a percent each.
Optimism over healthy corporate earnings, robust domestic economic growth, expectations of a favorable general election outcome and positive global cues supported the Indian stock market rally.
Also Read: Why is Indian stock market flirting with record highs? — explained with 5 reasons
However, analysts have flagged concerns over the stretched valuations and expect a sharp correction in the markets.
Sanjiv Bhasin, Director, IIFL Securities foresees a ‘sharper-than-expected’ correction in the market in the next fortnight and believes investors should take some money off the table.
“The markets seem to be pricing in all the positives. Investors need to remain watchful as markets are in overbought territory. The valuations are pricing in 24-25x future earnings. A sharper-than-expected correction can be seen in the next fortnight,” said Bhasin.
He suggests investors can book some profits in the market at these levels ahead of the earnings seasons.
Speaking on the corporate earnings for the quarter ended March 2024, Bhasin said it would be a mixed bag, with private banks and specialty chemicals companies likely to see a rebound.
While Sensex touched the 75,000 level on April 9, market participants eye the 1,00,000 level for the 30-share index.
However, Bhasin is of the view that it will take some more time for that milestone to be reached but gave his Sensex target for December 2024.
“Sensex would take around one and a half – to – two years to reach the 1,00,000 milestone. However, by the end of 2024, we expect the Sensex to see levels around 85,000,” Bhasin said.
He believes the global geopolitical situation will ease by the year-end and domestic earnings to remain firm which would drive the markets this year.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 09 Apr 2024, 12:56 PM IST
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