Gaurav Bhandari, CEO of Monarch Networth Capital, forecasts the Nifty 50 index will reach new all-time highs between 26,000 and 26,500 within the next four to five months, according to livemint.com. This prediction comes amid expectations of easing US bond yields, a weaker dollar, and renewed global liquidity that could drive foreign investment back into Indian equities.
Bhandari's outlook is based on three key factors: falling US bond yields, a weakening US dollar, and capital moving from low-risk assets into equities. He advises investors to focus on selective buying of quality stocks rather than adopting a defensive stance. The Nifty 50 has recently faced pressure from rising crude oil prices, higher bond yields, a weak rupee, persistent foreign institutional investor selling, and geopolitical tensions between the US and Iran, leading to a 3% decline in the past month and a 14% drop from its 52-week high.
The forecast highlights the potential for a reversal in global macroeconomic conditions to create a favorable environment for domestic stocks. The Nifty's recent volatility contrasts with the sharp rebound seen in IT stocks after strong quarterly results from companies like HCL Technologies and TCS, which helped the index recover some losses. Finance Minister Nirmala Sitharaman's remarks on reviewing capital gains tax policies also contributed to market optimism, as reported by thehindubusinessline.com.
The Nifty 50 index closed at 22,721.95 on Tuesday, up 1.6%, following a broad-based rally led by the IT sector. The next few months will reveal whether the predicted macroeconomic shifts materialize to support sustained gains in the benchmark index.