Nifty50 outlook-Vision 2020: Market expert Sanjiv Bhasin says index set to hit this new record

After creating records last week, stock markets have been trading flat. The euphoria over BJP winning the Lok Sabha Elections 2019 is still intact and more good news awaits investors as chances of making lots of money have increased. PM elect Narendra Modi is all set to take Prime Minister's oath on 30th May but as an investor, what all should be your priority? Sanjiv Bhasin, Executive Vice-President, Markets & Corporate Affairs, IIFL told Zee Business TV that, 2020 will be the year of record highs among mutual funds mid caps, small caps and many indices. Investors are advised to remain intact for 3 to 4 months, no matter that market will be volatile and swinging in all directions for sometime.

Bhasin further added, ''Two of the pulling forces domestic markets are weak corporate earnings and unsupportive global cues, but the mandate given to this government cannot be neglected at all. Composition of the ministries will be a very big portfolio, also the finance ministry is expected to have some changes, which will be proactive for both lending and resumption of consumption cycle. 

''As global bond deals have gone into a bear market, emerging markets will be the biggest beneficiaries. Also, as our inflation is low, bond deals are low and RBI rate cut is eminent, our yields can come down by 100-150 bps next year. The situation clearly mandates signals SIPs as a fixed income option, acting as a gold for investors at present.'' 

The markets are hovering nearly all time highs as the NSE Nifty50 is trading at 11,900 levels, while BSE Sensex trading nearly 39,650 levels. The not so positive and surprising Q4 earnings of various companies and issues between US-China on their trade relations are some of the worries at present.

''The corporate earnings will catch up after October this year, and I can assure that 2020 will be the year of record highs among mid caps, small caps and many indices. The investors are advised to remain invested for 3 to 4 months, no matter that market will be volatile and swinging in all directions for sometime. While the second half of this fiscal and mid cap outperformance will drive Nifty50 to 13,000 close to 31st December, 2019,'' Bhasin said. 

The period till October is to research on your equities and remain invested for longterm. The Indian markets are going to get a boom due to strengthening rupee, positive future of mid caps and continuity of the government. The only things that will remain forever is an investment cycle, Bhasin added.