Investors expect Nifty to breach 10,000-point level soon

Source: The Hitavada      Date: 20 Jul 2017 10:04:07


Business Bureau,

BUOYED by the market sentiment, the Nifty is all set to create history by scaling the 10,000-point milestone and making a new lifetime high within a week or two. “There is excitement among investors as the economy is set to grow with the Goods and Services Tax (GST) roll-out, prediction of good monsoon, lower inflation numbers and increased Government spending on infrastructure projects,” said CA Kailash Jogani while talking to The Hitavada on Wednesday.

The inflation numbers, which are on the lower side and below exceptions, warrant a cut in interest rates by the Reserve Bank of India (RBI) in its next meeting. “One of the most important triggers has fallen in place like the GST implementation which could be a game changer for the economy. GST is expected to increase the Gross Domestic Product (GDP) of the country by a few points,” he said.

Investors were upbeat and expected the smooth implementation of GST in the near future. Furthermore, there had been reports of good monsoon across the country which would benefit agriculture sector and raise consumer demand in rural areas. Also, the Government spending on important infrastructure projects was on the rise especially on Metro projects, roads, ports, highways, etc. FIIs were also investing heavily due to the continuous reform process taking place in the country.

The Sensex had already scaled the psychological 30,000-point level and was heading towards the 35,000-point level. World markets were also at record high levels. All these factors had contributed towards sentiments being upbeat and were responsible for the upswing in the stock markets, he said.

The steel sector was looking positive with revival signs and increase in demand. The Government had hiked the Import Duty on steel being dumped in the domestic market by countries like China. Recently, the US Federal Reserve had announced that it would raise interest rates in a phased manner. Banks’ concerns regarding non-performing assets were also being addressed by the Government. Also talking about merging big public sector banks with smaller ones was also being considered by the Government.

“All these triggers will have a positive effect on the capital markets which are expected to make new highs in the coming days,” he added. Investors should be cautious while investing as stock valuations were getting over stretched. They should be selective at higher levels and buy fundamentally strong scripts. There would be bouts of selling at higher levels, CA Kailash Jogani added.

CA Dr T S Rawal said that the Nifty would certainly overtake the 10,000-point mark within a week or two. Investors were optimistic and sentiments were all pumped up with the implementation of GST, sound monsoon and ongoing reform process in the country. Government spending on infrastructure was going up and sectors like cement and steel would benefit from better demand.

He advised that investors should look at sectors like housing, infrastructure, cement, steel, FMCG, banks and IT.
CA Sameer Bakre was also of the opinion that the Nifty would be able to go beyond the 10,000-point level within a few weeks. Investor sentiments were positive as the Government was bringing out sweeping changes in the economy by introducing GST, RERA, talks about merging
public sector banks, expectation of lower interest rates and
good monsoon.

These factors would have a positive impact on the economy by bringing in discipline in various sectors.
Still, he advised the investors to buy stocks which had growth prospects and strength of company. “Investors should not buy stocks of any company blindly,” he pointed out.