Market broke 10 year old record, will the rise continue further? Understand mathematics from experts before investing money. - Newztezz Online

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Tuesday, September 12, 2023

Market broke 10 year old record, will the rise continue further? Understand mathematics from experts before investing money.

Sensex closed at 67,127.08 points with a gain of 528.17 points. It is about 500 points behind the life time high. On July 20, Sensex had reached life time high with 67619.17 points. On the other hand, the main index of National Stock Exchange, Nifty, had crossed the level of 20 thousand on Monday.

The stock market is breaking all records. On Monday, Nifty has crossed the level of 20 thousand. On Tuesday, Sensex should also cross the level of 68 thousand. The report that has come out regarding Nifty is really shocking. Nifty has broken the record of giving returns after 10 years. According to market experts, after 10 years Nifty has seen returns of more than 15 percent. Which is expected to increase to more than 17 percent by the year 2025. Experts say that the interest of foreign investors, demand from retail investors and the outlook for the Indian market clearly indicate that the stock market may continue to rise in the coming days.

Possibility of 17 percent return in two years

According to brokerage firm ICICI Securities, after a decade, the return on equity (ROE) in Nifty index has recently gone above the limit of 15 percent. According to an estimate by ICICI Securities, it is likely to expand by 17 percent by financial year 2025. According to information, the ROE of Nifty was around 15 percent in 2014, which decreased to around 12 percent in 2022 and since then has come back to around 16 percent.

What do experts say?

According to an ICICI Securities report, according to equity strategist Vinod Karki, the stocks that are likely to improve their ROE and transition into the value creation zone from FY 2023 to 2025 include auto, capital goods, infra, utility, telecom, commodities. And financial intensive cyclical sectors are included. According to the report, the ROE trajectory was before the pre-Global Financial Crisis era between 2003-2007 when capital intensive cyclical stocks like L&T, BHEL, Bharti, NTPC, Hindalco, Mahindra & Mahindra, ACC, Reliance and DLF were at sub-14 per cent levels. But, currently, more than 15 per cent of them have been converted into value creation sectors.

Stock market at record level

Bombay Stock Exchange's main index Sensex closed at 67,127.08 points with a rise of 528.17 points. It is about 500 points behind the life time high. On July 20, Sensex had reached life time high with 67619.17 points. On the other hand, the main index of National Stock Exchange, Nifty, had crossed the level of 20 thousand on Monday and closed at 19,996.35 points, a gain of 176.40 points. According to the data, a new life time record was created with 20,008.15 points. If experts are to be believed, Nifty can soon reach the level of 21 thousand in the short term.

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