What to expect in share markets in the election year – Times of India

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With tailwinds of a remarkable year and handsome investor returns, Indian equities are set for an eventful journey in 2024, with a slew of local and global cues — varying from interest rates to Lok Sabha polls to geopolitical happenings.
Analysts are of the view that the bull run in the domestic equity market will continue, and over the next 3-6 months, the benchmark indices — Sensex and Nifty — could climb up to 7%.
In 2023, the 30-share BSE Sensex jumped 11,399.52 points or 18.73%, and the NSE Nifty climbed 3,626.1 points or 20%.
With eyes on…
The Lok Sabha election, the US Presidential polls, the trajectory of interest rates, particularly in the US and India, inflation trends and geopolitical situation will be the key factors for the stock market, analysts opined.
Experts said the return of the BJP government with a majority in the 2024 general election is a pivotal factor on the market’s wishlist for the new year.
The connection
As political stability plays a significant role in shaping market dynamics, the market’s optimism hinges on a smooth and decisive outcome in the upcoming elections, fostering an environment conducive to sustained economic growth and prosperity in 2024, an expert said.
A note by Motilal Oswal Broking and Distribution said that the Lok Sabha election and the first budget post-election would be most important on the domestic front.
Why this confidence
Dalal Street investors added a whopping Rs 81.90 lakh crore to their wealth in 2023.
A raft of positive factors is working favourably. India continues to be the fastest-growing economy in the world. Macroeconomic factors are beginning to turn positive.
Falling US bond yields have once again fuelled robust foreign fund inflows into the Indian market. Sliding crude oil prices are likely to keep inflation under check. All these augur well for Indian equity markets going ahead.



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