Samvat 2078 Outlook: Would Nifty breach 20k mark– Analysts list out key sectors as well as index gains

As we enter into a Diwali 2021 week, the analysts are of a view that Samvat 2078 would be more realistic unlike the current Samvat 2077, which was termed as extraordinary and fabulous. They also pointed out that the market would see consolidation till the second half (March-April) of Samvat 2078.

In this regard, Tradeswift Director Sandeep Jain believes that the money would continue to be made going forward, especially in fundamentally strong stocks, whose quarterly numbers are good. 

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According to Jain, the market post corona has been filtered on many fronts and has gone into the hands of organised sector, which has really benefitted the listed companies. Quarterly results are likely to have a good impact going forward on the market, he added.

The analyst mentions that the market would now get realistic, and unlikely to perform the same in 2078 as it was in the current Samvat. Jain feels a reasonable 10-15 per cent returns can be expected in the upcoming Samvat and Nifty may touch 19500-20000-mark.

Before concluding, Jain says that low-hanging fruits have been ended from the market and we are heading to the realistic market.

Similarly, the Choice Broking Executive Director Sumeet Bagadia also says, Samvat 2078 is unlikely to see the same rally as that of Samvat 2077 but expects the buying sentiment to continue and see a good move in the market going forward.

Bagadia further says, “There has been a multi-year break out in the metal sector and it will outperform in the next 6-8 months for the sector, even the banking sector has given a breakout after a long time and its rally will continue, both banking heavyweight and PSU banking will outperform.”

Meanwhile, Dolat Capital Head of Research Amit Khurana noted that the Samvat 2078 remains constructive and positive, however, the returns could be backloaded for 3-5 months and we may see a consolidation and reality check phase in the market, due to higher inflation, supply chain issues, valuations being very extended and few sectors not reporting adequately good numbers.”

Khurana mentioned that between now and around February-March, the market would witness a consolidation phase, and see the returns phase coming in from the second half of Samvat 2078.

The market would be more realistic in terms of return expectations, Dolat Capital research head said, further adding that believe economy-related sector stocks will do better, even capital goods sector is showing some recovery, around 17-18 per cent index growth can be expected in 2078.

Investors should expect only modest returns for the coming Samvat, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services mentioned. “It would be safe to remain invested in high-quality stocks in performing sectors like private sector banking; leading names in the mortgage, fintech and financial services; IT and construction-related segments"