ICICI Direct report says Nifty 50 is likely to touch 23,400 mark ahead of poll results

With voting for the 2024 Parliamentary elections set to begin on April 19, ICICI Direct has released a report, where it has estimated that the Nifty 50 would touch the mark of 23,400 before the election results are announced on June 4.

The brokerage has set a target of 24,700 for Nifty 50 for CY24.

The Nifty 50 benchmark was trading at 22,450.35 points at 11:13 am on Wednesday.

The brokerage further estimated that Bank Nifty would touch the mark of 51,000 points by June 2024. The target for the same index for CY24 is 55,000.

Nifty Bank was trading at 47,507.35 at 11:13 an on Wednesday.

The 2024 Lok Sabha Elections (2024 Parliamentary Polls) will take place in seven phases.

The first phase voting is scheduled for April 19, while the seventh phase is for June 1.

Counting of the votes will take place on June 4, and the results will be declared by the evening on the same day. 

The report further said that there will be growth in the BFSI, auto, capital goods and metal sectors ahead of the elections.

Recaping past performance of the indices in the election year, the report says that the market bottoms out in the first quarter before the elections.

It says that after bottoming out, the market rises by an average of 14 per cent.

The report said that the decline in the midcap index is almost complete.

The report was referring to the Niftymidcap 100 index, which was declining till a few weeks back, but has now been recovering with a 3.77 per cent rise (as of 11:15 am) in the one week.

The report says that in a bull market, there is an average decline of 12 per cent in midcaps, of which a 9 per cent has already taken place.