Are the Indian Markets Getting Back on Track ?

Indian markets are currently rising above with the speed that every investor wants. The market is getting back on track from the tragic fall of the Nifty50 index. While considering the further aspects for the market we need to look at the journey that the entire index has gone through. The Nifty50 index was struggling to get out from the bearish grip given the high volatility present in global trends. The entire world was suffering from bad news one after another. First it was COVID followed by the Russia and Ukraine Crisis. Then came the Sri Lankan government and its default in the global economy. Finally comes the fear of recession and a rapid decrease in the prices of goods and services. The interest rate hikes overall the globe also played their role in making the bear more aggressive towards the markets.

However currently the situation is getting normalized. People are assuming that the markets will touch new highs in the coming period of time but still there are a lot of bumps in its way. The first one is going on currently which is the quarterly results. The results of almost all the companies are not that bullish. The major companies have suffered from undergrowth. In other words we can say that the expected growth is not seen in major companies this year. The most affected segments can be termed as infrastructure and information technology. 

Infrastructure and Information Technology

The infrastructure companies such as Ultratech Cement or Shree Cement have been suffering from Adani’s entry into the cement sector. The giant developers are also struggling from interest rate hikes and slow rate of work. However the situation is getting normalized by the government’s steps to hike the rates imposed on export of various products like steel. On the other hand the cement industry is currently exposed to the increasing risk of competition. But the contraction of the way seems pretty delightful for investors to stay invested in the companies.

On the other hand the bet for the next quarter should definitely be the Information technology companies. Major companies like Tata Consultancy services, Wipro, HCL Tech, Infosys etc. have posted a poor result this quarter. However in the recent meetings from the companies it was made clear to the investors that they do not need to worry for the results of the next quarter. The further road seems very beneficial for all the companies. The common reason stated by all of them were the projects in the pipeline. All the information technology companies have major projects to get completed in the upcoming quarter and they would definitely give a boost to the results as well. The companies also stated that the results are going to be unaffected by the recession that is feared to occur in the economy.

Nifty50 and Bank Nifty

The major winner for the last 1 month is the Bank Nifty index. If we sum up the gains then Bank Nifty has also given a return of more than 1200 points in the past 4 weeks of time. This has made it possible for the index to achieve the benchmark of 37000 again from the 32500 levels. The results posted by many banks such as Axis Bank also show a rapid growth in the banking industry. One can be bullish on the further run of Bank Nifty if the situation of recession does not occur. 

On the other hand Nifty50 has gained the level of 17200 and above from 15000 range. The index has shown major gains and the reason behind the same was the banking and finance segment. If we look closely then the Bajaj Brothers have posted stellar returns for the investors in the past week itself. Along With Them the insurance companies are also showing their bullish effects in the market. Hence the Nifty50 has gained major valuation due to the bullish trend in this sector. 

Apart from this one can expect the index to rise or atleast stay at same levels for a longer period of time due to the information technology segment’s assumptions. If things go well then we can see the Nifty50 achieving the levels of 18600 or all time highs before the end of this year itself. 

The Further Prediction

In the coming period of time the Nifty50 index is definitely going to strike the 18600 levels if it crosses the 17600 and 17800 levels with momentum. However if not that we can expect that the market won’t sink below 16500 levels. However on the other hand one should stay invested more into the information technology sector and Adani Group. 

The reason to pick Adani group is the coal aid that would be received by Adani due to shortage and import capacity. Hence the market momentum is going to be bullish. One can definitely expect that the further road for the Indian markets is going to be an uptrend in a long period of time. Before The end of this Financial year excluding the recession effects we can expect the Nifty50 to touch new highs.

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