Indian stock market benchmark Nifty inched higher on Monday with Nifty trading above 9650. The breath in the broader market was strong with BSE midcap and smallcap indices rising 0.50 per cent and 0.75 per cent respectively. VK Sharma, Head (PCG) at HDFC Securities, expects Indian markets to maintain the upward trend. The Nifty has broken multiple records this year and some brokerages have revised their targets higher. Expectations of stronger earnings and economic growth following prediction of normal monsoon has led to a surge of money into the Indian markets.
Here is VK Sharma's view on Nifty:
Market expected to inch higher.
The RBI is likely to sound more accommodative when it meets on the 6th and 7th of June given the lower than expected Q4 GDP growth and falling inflation expectations.
Markets are confident that an expected rate hike in the US on the 14th of June will be easily absorbed. The weak non-farm Pay Roll numbers that came in worse than expected at 1,38,000 on Friday and a downward revision of earlier numbers will make the Fed policy less hawkish going forward. A 0.25 per cent Fed rate hike is already baked in.
With the result season now over, we expect the markets to move higher and seek levels of 9,800.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
