Market In Euphoria! Nifty Hits New Lifetime High, Crosses 20,000 Mark; These Stocks Are Worth Noting

Indian stocks are in euphoria on Monday as the benchmark Nifty 50 riding on the bulls touched a new lifetime high and breached over psychological 20,000 mark. Sensex also crossed over the 67,000 mark, however, resisted touching its all-time high levels. The grassland is greener across sectoral indices with midcap and smallcap stocks outshining their large-cap counterparts. The 20,500 level is now on the horizon for the Nifty 50 and is expected to be a reality later this month.

In the last minutes of closing, Nifty touched a new historic high of 20,008.15 on September 11, 2023. The success of G20 coupled with robust macro fundamentals and consistent fund inflows has driven the Nifty 50 to reach over 20,000 mark. More bulls are expected on the road ahead!

Kaushik Dani, fund manager - PMS, Abans Investment Managers said, "Resounding success of G20 brings in the desired momentum and market valuations are yet to cross previous peaks."

Sandip Raichura - CEO of Retail Broking and Distribution & Director, Prabhudas Lilladher Pvt Ltd on Nifty's 20K milestone, said, "20k on the Nifty may just be a number but its history, nevertheless. While we may keep talking about valuations and liquidity, the fact is that a lot is changing in India and maybe the markets are collectively seeing this golden decade ahead very differently from the cynics!"

While AMIT GOEL Co-Founder & Chief Global Strategist, Pace 360 said, Indian equities have been on a remarkable run, outperforming their global counterparts with unprecedented resilience and tenacity. The Nifty 50 index has achieved a historic milestone by breaching the 20,000 mark. What makes this rally even more stunning is the stellar performance of small and mid-cap stocks, which have outshone their larger counterparts by a huge distance, marking this rally one of the most robust seen in recent history. This surge in the markets has fueled investor optimism to its zenith, with confidence in India's economy and corporate sector right now in unchartered territories.

Nifty closed at 19,996.35 up by 176.40 points or 0.9%, while Sensex advanced by 528.17 points or 0.79% to settle at 67,127.08. Meanwhile, Bank Nifty zoomed by 477.45 points or 1.06% to end at 45,633.85. The Bank Nifty index is next in line to drive towards the 46,000 mark likely later this week. Adani shares like Adani Ports, and Adani Enterprises were top gainers on Nifty 50, soaring by 7.10% and 3.68% respectively. Other stocks like Axis Bank, Apollo Hospital and Power Grid were also among the top bulls with upside of more than 2% each.

Further, the Nifty Midcap 100 and Smallcap 100 index continued their back-to-back strong performance and recorded new all-time highs of 41,467.20 and 13,006.35 respectively.

Year-to-date, Nifty 50 has skyrocketed by 1,798.90 points or 9.89%, while Sensex zoomed by 5,959.29 points or 9.74%.

Markets Outlook Ahead:

Going ahead, GOEL believes the rally may create even more milestones over the next few weeks before the market peaks out. Once the momentum gets exhausted and markets start plateauing, we would recommend investor caution as the current euphoria and valuations are unsustainable in the longer term.

In his technical view, Rupak De, Senior Technical analyst at LKP Securities said, looking ahead, "Market sentiment is expected to remain upbeat as long as the Nifty stays above the 19,900 level. On the upside, we can identify an immediate resistance zone between 20,100 and 20,200. If there is a convincing breakthrough above 20,200, it could pave the way for the Nifty to advance towards the 20,500 mark."

Also, Nitin Agrawal, CEO of Torus Oro PMS said, "We expect the bullish sentiment to continue as high-frequency macro data like GST collections is suggesting strong fundamentals," adding, "Retail investors have continued to invest around $2bn a month via SIPs. There are also huge inflows coming in from FPIs with many global fund houses increasing their India allocation."

Globally, when developed economies are either struggling with lacklustre growth or rising inflation, India is maintaining its balancing act. Agarwal added, "With thrust on manufacturing and revival in capex cycle, all the levers are in place for India to maintain its growth trajectory and become one of the key markets in the global economy."

Where to invest ahead?

Manish Chowdhury Head of Research StoxBox said, "The optimism surrounding the Indian economy, especially after a strong show at the G20 summit, is fuelling the current rally in markets. Against the backdrop of underperformance in the small cap space during 2018-22 period and growth in earnings thereafter, we continue to believe that there is still steam left in the select mid and small cap space considering their improved revenue visibility."

He also added, "we advise investors to keep an eye on large cap space as well as the risk-reward have become favourable for the IT sector and few heavyweights such as Reliance Industries, HDFC Bank and ITC. The overall texture of the market remains positive and we continue to advise buy on dips strategy for new entrants. As far as 21,000 levels on the index, we feel it would be premature to ride this kind of upside in the near-term and would revisit the markets at the end of the month."

Further, Dani added that boost in bilateral trades should benefit various segments like pipes and cables. Sectors like Railways, Shipping and Logistics would be direct beneficiaries of recent announcements. With corporate earnings gaining strength, indices seem comfortable to march forward in near to medium term.

Disclaimer:

The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.