Domestic markets will sustain the momentum despite mixed global cues. A close above the psychological 20,000 mark by Nifty is likely to give further impetus to the market, said analysts. Gift Nifty at 20,260 signals, a flattish opening as Nifty December futures closed at 20,267 on the NSE. As today is the settlement of F&O contracts and evening exit polls of five State assemblies will be out, traders expect volatile trading.

Meanwhile, the BSE-listed company’s market cap crossed the $4 trillion mark for the first time on Wednesday.

Nilesh Shah, Managing Director – Kotak Mahindra AMC, said: “India now is one of the few countries with a market cap over its GDP at $ 4 trillion. Normally, such a high valuation should be a cause of concern. This time, however, there is a Triveni sangam of Growth, Governance and Green transformation of the economy backed by the investors looking to buy into every correction. 

“While there will be ups and downs in the market, Indian economy and markets both are poised well in the long term as long as we deliver on the 3 G of growth governance and green,” he added.

According to Alok Agarwal, Head - Quant and Portfolio Manager, Alchemy Capital Management, “The growth juggernaut of India continues, with BSE listed companies surpassing $4 trillion market cap. India’s market cap to GDP now stands little over 100% vs 165% for the USA. With the nominal GDP itself expected to grow in double digits, the outlook for Indian equities continues to remain positive.”

Amar Ambani, Group President & Head – Institutional Equities, Yes Securities India Limited “Nifty has crossed 20,000 after a period of market consolidation. A global rally in yields have helped keep sentiment in equities intact. We’re hopeful that interest rates are close to their peak. Disinflationary trends are already being felt in the US, in commodities, airlines and automobiles. Consensus expects US inflation to be sub 3% next year. The ECB is also confident of bringing down inflation to 2% by 2025.

“We’ve had a good results season recently in India, and part of it could be attributed to a possible pre-election rally. India stands out in the world and as an alternative to China, and domestic liquidity continues to be strong,” he further said: Our banks are well provisioned and capitalized, our corporates are deleveraged, and there’s no housing bubble in India. If bond yields stabilise and also the INR, then FIIs will be strong buyers in Indian equities, and Nifty can deliver a 20% return next year.”

Asian stocks are mixed in early deals on Thursday, while the US stocks closed flat with marginal gains/losses.

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