- Data shows that large cap stocks (Nifty 50) have seen a 4% rally in the month of September at least 15 times in the last 20 years.
- Experts like Raamdeo Agrawal of Motilal Oswal Group and Biju Samuel of Elara Capital say that the benchmark index will continue to rise more from here while others like Howard Marks of Oaktree Capital are nervous.
- Benchmark equity market indices, Sensex and Nifty 50, have surged over 21% this year so far.
The fastest 1,000 point rally that took Nifty 50 past the 17000-mark in less than a month was bound to trigger a debate. Data shows that large cap stocks have seen a 4% rally in the month at least 15 times in the last 20 years. However, India has never seen a rally like the one we have, in the last few weeks and months. Benchmark equity market indices, Sensex and Nifty 50, have surged over 21% this year so far.
So will the momentum continue further or is a correction overdue? While we look to experts for cues, they don’t get it right all time.
While Howard Marks of Oaktree Capital exited all his India investments in June itself, Christopher Wood of Jefferies increased his weight on India. Bank of America Securities, in its report dated August 20, called for 9% correction on the Nifty and a fall to 15,000. Instead, we saw another 5% rally since then.
Even at the current level, market veterans are still divided. Let’s look at some of the recent commentary by some market experts: