Market Outlook 2023: Bulls likely to roar next year as experts see Nifty, Sensex may touch 22,200 & 74,000 levels – Check details

Market Outlook 2023: Many analysts believe that the domestic equity market in the coming year is expected to be more fruitful than in 2022, mainly due to a healthy outlook led by positive factors such as the easing of inflation, rate hike pauses, and corporate earnings expansion.

The benchmark indices – NSE Nifty50 and BSE Sensex – which are trading near 18100 and 61000 levels as of December 28, 2022, are expected to touch 22,200 and 74,000 levels, respectively, on the higher side in the next year, as per analysts.

They also believe that the macroeconomic indicators like GST mop-up, direct tax collection, consumer price-based inflation, industrial index, and core sector among others are strong as compared to the developed economies and emerging markets, and they are likely to strengthen further in 2023.

We have collated views from different experts on the 2023 market outlook:

Expert: Sameer Kaul, MD and CEO, TrustPlutus Wealth

While Nifty earnings are likely to grow in the mid-teens, it would be superior to earnings expectations in many other emerging markets. That said, although earnings growth will continue, it may not be large enough to justify a substantial upside.

At current levels, the Indian market is fairly valued, and hence upside from here could at best match the earnings growth over the next 12 months presuming no further expansion in valuation multiples. This would be the base case for Indian equities for 2023.

Expert: Vinit Bolinjkar, Head of Research, Ventura Securities

The strong economic outlook for India along with global recovery augurs well for the future business performance of Indian companies. We believe that the infra, cement, metals, bank and consumption story plays a key role in the overall business performance and expected to accelerate Nifty earnings.

After a single-digit growth in 2022, Nifty is expected to deliver double-digit performance in 2023. We are expecting Nifty to be in the range of 20,500 - 21,000 in 2023, while Sensex could cross the 69,000-mark by December 2023.

Expert: Amar Ambani, Group President & Head - Institutional Equities Head, YES SECURITIES

We see a possibility of 20% gains in the benchmark indices, driven largely by financials and resurgence of IT Services. Most of the gains in the market would be earnings led. Nifty may touch 22000-level, while BSE Sensex at 74000-mark.

Expert: Apurva Sheth, Head of Equity Research, Samco Securities

India is the only major economy growing at a healthy rate of 6-7% despite all the global problems. Apart from this Sensex is also in 8-year long greed phase which ends in April 2024. Sensex generally performs well during the greed phases.

We believe that Sensex could touch 100,000 by April 2024. Also 2023 is a pre-election year for India and US. Governments generally do everything in their power to keep the markets buoyant before elections. Corresponding levels for Nifty would be around 30,000.

Experts: Sunil Damania, Chief investment officer, MarketsMojo

While 2022 was unfavourable for equity investors, 2023 will see an increase in investor wealth as headwinds fade. With inflation expected to fall next year, central bankers will begin to lower interest rates. Furthermore, high commodity prices would soften.

We believe the Indian equity market will perform exceptionally well, with elevated FII inflows, expanding retail investors, positive earnings growth, and tailwinds on the way. Based on these assumptions, we expect the Nifty to reach 22,200 by December 2023.

Expert: Shibani Sircar Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra AMC

Indian growth outlook appears stable and a relative outlier. However, the external sector is the key monitorable. Corporate earnings estimates have seen some downtick recently. Conversely, commodity cost pressures easing off is a positive, and earnings growth from here on would likely be driven by operating leverage.

While growth remains strong, Indian markets are trading at valuations that are above long-term averages on an absolute basis and valuations relative to emerging markets are stretched. With this backdrop, we believe that bottom-up stock picking would be the way forward in 2023.