- Brokerages and analysts project that the Nifty will reach its CY24 target of 24,200.
- the Nifty was trading close to its all-time highs and gained about 7% during the December series.
- India FPI flows and US rates have an inverse relationship.
Brokerages and analysts project that the Nifty will reach its CY24 target of 24,200 as the end of 2023 draws near, a gain of more than 13% from the previous closing.
Heavyweights in the BFSI, auto, cement, and healthcare sectors, according to Pankaj Pandey, Head of Research at ICICI Direct, could help the Nifty reach its objective.
Nifty
Even while the Nifty was trading close to its all-time highs and gained about 7% during the December series, its gains over the past 12 months have been roughly 16%, which is comparable to other markets.
Additionally, Pandey cautions that in the upcoming months, volatility will likely remain stuck around present levels and advises investors to pursue a “buy on dip” strategy during the first half of CY 2024.
India FPI flows and US rates have an inverse relationship; in CY-23, FII flows resumed as anticipation of a rate drop took hold and the interest rate soared.
It is anticipated that capital flows into India will be stimulated by the weak dollar index, with India being the primary recipient of these inflows.
The market has been experiencing downward trending volatility for a while now, according to brokerage analysts, and this has been one of the Nifty’s greatest return periods. Since 2021, neither the US VIX nor the India VIX have been able to maintain higher levels, indicating inherited strength in the equity markets.
