The NSE benchmark Nifty is likely to reach the 25,810 level by December 2024 as stable economic policies and normal monsoon will boost demand growth, Prabhudas Lilladher said in a report on Thursday.

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The index is currently trading at 22,570.35 level. Going by the prediction of Prabhudas Lilladher, the Nifty is expected to climb another 3,239.65 points or 14.35 per cent from its current level by December-end this year.

"Recently, the Nifty reached its all-time peak, but subsequently experienced a correction of around 4 per cent attributed to escalating geopolitical tensions, fluctuations in crude oil and commodity prices, and differing perspectives on the anticipated interest rate adjustments by the US Federal Reserve," Amnish Aggarwal, Head of Institutional Research, Prabhudas Lilladher, said.

The Nifty is expected to scale up to 25,810 levels by December 2024, Aggarwal added.

"The upward mobility in Nifty is attributed to the continuation of the NDA government and La Nina led normal monsoon, which is expected to provide stability in policies and boost demand economic growth," Prabhudas Lilladher in its latest India Strategy Report – Democratic Hat-trick to Re-Rate Markets stated.

Concurrently, India is immersed in the general elections, a pivotal event of this decade, Aggarwal said.

Despite opinion polls forecasting a comfortable victory for the NDA, the markets are not ready for a repeat of the 2004 election outcome, where the BSE Sensex plummeted 15.5 per cent on May 17, 2004, the day election results were announced, he added.

"The beginning of June is expected to be a crucial turning point as uncertainty around the political front, and monsoon will be over, which can significantly increase FII inflows," Aggarwal said.
An analysis by the brokerage firm shows that the economy and markets have done well under both the NDA and UPA, given strong tailwinds of demographics.

"However, the NDA scores in implementing key reforms and its focus on infra development and inclusive growth across sections and regions. BJP manifesto is providing more clarity on the economic path with a focus on building world-class infra and investing in technology transition, which is sweeping the universe at the expense of freebies," it added.

Over the last three months, the top-performing sectors have been auto, metals, power, and oil and gas, while defensive sectors like IT services, FMCG, banks, and consumer durables have lagged, as per the report.

Realty, healthcare, and capital goods have maintained their positive momentum, it added.