Domestic markets are expected to open on a positive note on Monday as well. Dhanteras started on a positive note, and the sentiment will likely continue, said analysts. Gift Nifty at 19554 indicates a flat-to-positive opening for domestic markets, as Nifty futures on Diwali day closed at 19,538. While the market may open in a positive zone, some expect profit-taking at a higher level.

The Indian economy currently finds itself in a sweet spot of growth and is well-poised for continued resilience in the face of global challenges. Samvat 2080 will be a fascinating year to watch out for the global economy, said Pranav Haridasan, MD & CEO, Axis Securities.

Sunil Shah, director at Khambatta Securities, said Indian equities are expected to outperform most other global markets due to continued geopolitical uncertainties and relatively higher domestic economic growth. “The major themes will be domestic consumption and premiumisation, enabling companies to post strong earnings growth aided by margin accretion. Infra and construction plays are expected to do well as the government’s thrust on infrastructure development is seen to continue, while higher budgetary allocation in rural-focus schemes can help drive a recovery in rural consumption, especially with the upcoming budget being the last one before the general elections,” he added.

Asian stocks are up in early deals on Monday, tracking the strong closing in the US stocks. Due to the holiday mood, analysts expect volume to remain low.

Sunil Shah, director at Khambatta Securities, said Indian equities are expected to outperform most other global markets due to continued geopolitical uncertainties and relatively higher domestic economic growth. “The major themes will be domestic consumption and premiumisation, enabling companies to post strong earnings growth aided by margin accretion. Infra and construction plays are expected to do well as the government’s thrust on infrastructure development is seen to continue, while higher budgetary allocation in rural-focus schemes can help drive a recovery in rural consumption, especially with the upcoming budget being the last one before the general elections,” he added.

Despite rich valuations in the small- and mid-cap segments, companies with fundamentally strong businesses and good earnings growth continue to justify their valuation, he further said

“If US bond yields start coming down by the second half of CY2024, FPIs will come back to the party. Upcoming state and general elections can make the market move sideways. Inflation, interest rate trajectory, and geopolitical tensions will remain the key risks.” Sunil Shah said.

According to Shauryam Gupta, CEO of Rupeezy, the outlook for the Indian economy appears promising and bright. Despite the turbulence in the global landscape, India is on a favourable growth trajectory, which will serve as a significant driving force for Indian equities shortly. The improvement in the financial health of corporate India’s balance sheets and the significantly enhanced state of the Indian banking system represent additional positive factors. These elements are poised to ensure that Indian equities consistently deliver double-digit returns in the next 2-3 years, supported by substantial double-digit earnings growth.”

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