The monetary policy of the Reserve Bank and the central government's budget will be very important in the coming days in terms of market share. Experts believe that the Sensex could reach up to 43 thousand by March next year. The stock exchanges have shown a lot of enthusiasm for returning to the power of the National Democratic Alliance (NDA) government under the leadership of Prime Minister Narendra Modi, and this is the reason why the Sensex and Nifty have been in a steady pace over the past several days.
Private sector Kotak Securities believes that by March 2020, the Sensex will reach the scope of 42,000 to 43,300 points. According to the brokerage company, after the enthusiasm of election results is over, the market will look at the basic factors. The trade-war between the US-China and the Indian economy will be the focus of the solution to the issues arising.
According to the news agency PTI, Kotak Securities Managing Director and CEO Kamlesh Rao told reporters, "Instead of getting a fragmented mandate in the stock exchange center, stability, continuity and robustness were expected to lead. With the coming of power of a strong government, hope is going forward with the improvement of the investors and the strengthening."
They said, 'First of all, we will see what the government does in the budget.' In the coming days, Rao said in his estimate about the market scenario in the coming days, "We expect that by March 2020, the Nifty will be in the scope of 12,500 and 13,000. By the end of March 2020, the market will reach 13,000 to 13,500. He said that Kotak Securities has estimated the Sensex to be between 42,000 and 43,300 (average 42,650 points) till March 2020.
Rao said, "Political mandate is good, but I believe there are many issues outside the country and the nation that need attention. The trade war between the US and China is well known, we believe that there is a slowdown in the macroeconomic situation at the local level. If crude oil lasts around $ 70 a barrel then it is okay, but if it stays for a long time above this limit then it will cause damage. The flow of foreign institutional investors is positive and we believe investment in Indian markets will come.
Regarding expectations from the Modi government, Rao said, "We expect the government to focus on economic growth and revival of investments. At the macro level, the economic situation remains quite challenging. It requires financial incentives from the government, but its scope seems limited, as the fiscal deficit remains high. Nonetheless, there is scope for monetary incentives. Cutting down on interest rates, increasing the FPI limit for government bonds and putting capital into the banking system can improve the situation.
