Nifty likely to touch 12,400-12,500 by March 2019: Reliance Securities

Reliance Securities, the broking arm of Reliance Capital, sees the Nifty scaling up to 12,400-12,500 by end-March 2019, a top official said. The house view on the Sensex is that this benchmark will go up to about 41,000 levels, Vikas Inder Jain, Senior Analyst, Reliance Securities, told BusinessLine here.

While the Nifty closed at 11,570.90 on Tuesday, the Sensex ended at 38,285.75.

Stating that investor interest in equities is high and is expected to sustain in the coming days, Rajeev Ratan Srivastava, Business Head — Securities and Commodities, Reliance Securities, said the broking house had projected 14-16 per cent return in equities this fiscal.

“We have already achieved 14 per cent if we were to compute returns between April and now. Our view is that the upside potential to the benchmarks (Sensex and Nifty) is limited. There is still value in certain specific large- and mid-cap stocks,” Srivastava said.

Srivastava was in the capital for the 55th edition of ‘Nivesh Mantra’, an event organised by Reliance Securities at various cities for improving awareness of retail investors on equity markets.

He highlighted that investors have kept their faith in equities and continued to invest via Systematic Investment Plans (SIPs) although mid- and small-caps took a knock in recent months.

The aggregate monthly contribution to SIPs have only grown up to ₹7,400 crore in July from an average ₹6,400 crore in March, he said. “Even in the last five months, when people have seen their money eroding due to correction in mid- and small-caps, they have kept on putting more money. Now people have realised that even if there is a short-term correction, they shouldn’t lose patience,” he said.

Asked if the equity markets in India faced headwinds, Srivastava said the uncertainty over Iran (how India will deal with the US sanctions situation) will keep the equities range-bound.

Reliance Securities plans to soon a launch a mobile app ‘Reliance Smartmoney App’ for the benefit of those who are new to equities, Srivastava said.

This new app will be in addition to the already existing mobile app that caters to customers well-versed with the equity markets.

It may be recalled that Reliance Securities had also recently launched a new web-based platform by name ‘Reliance Smartmoney’.

Srivastava also said Reliance Securities, which is among the top 10 equity broking houses, aspires to be in the top-five league in the next three years in terms of volumes and market share.

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