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Market benchmark Sensex may surpass the level of 50,000 while the Nifty50 index may trade in the range of 14,000-15,000 in the year 2021, according to a poll of analysts conducted by Moneycontrol.
About 40 percent of total respondents believe the Sensex may top 50,000 mark while some 33 percent are of the view that the Sensex may trade in the range of 45,000-48,000 for the year. The remaining 27 percent of the total respondents believe Sensex may trade in the range of 48,000-50,000 for the year.
For Nifty, 47 percent of total respondents believe the index may trade in the range of 14,000-15,000 during the year 2021. Some 33 percent of the total respondents are of the view Nifty may hover anywhere between 13,500-14,500 and the rest 20 percent believes Nifty may top 15,000 mark.
The market is at record high levels and is showing resilience on the back of abundant liquidity, positive developments on the vaccine front and signs of economic recovery.
Analysts point out that the year 2021 will be marked by hopes of the early roll-out of the COVID-19 vaccine, normalisation of activities, healthy corporate earnings and economic growth.
Analysts are bullish on the prospects of equities and most of them believe mid and smallcaps will outperform the large-caps.
About 80 percent of the respondents of the Moneycontrol poll believe mid and smallcaps will outperform in 2021.
The risk appetite of investors are high and analysts believe equities will outshine gold in 2021.
About 73 percent of the respondents think gold will underperform equity in the year.
In CY20, quarterly earnings of India Inc came better-than-expected and all respondents of the Moneycontrol analysts' poll believe the earnings will improve further this year.
"2021 will be a year of growth. We expect the GDP growth rate in 2021 to be closer to double digits and earnings growth to be over 30 percent for India Inc. Union Budget in 2021 could also be a blockbuster. Putting these perspectives together, we are likely to see a robust 2021," B Gopkumar, MD & CEO at Axis Securities told Moneycontrol.
"For 2021, I expect a double-digit return in the Nifty and more importantly a much broader market participation led by the economy and earnings recovery, coupled with the continuation of liquidity flows and favourable government policies. But there could be intermediate corrections and hurdles in-between, which I believe is healthy for the market," Sanjeev Hota, Head of Research at Sharekhan by BNP Paribas said.
Bulls kept control in the calendar year 2020 with market benchmarks Sensex and Nifty gaining 15.75 percent and 14.90 percent, respectively.
It was a year of hope and despair for the market. While COVID-19 loomed as a grave threat on the market, liquidity boost, better corporate earnings and hopes of vaccine kept the market high.
The market corrected around 40 percent during February-March from its peak in January but after hitting a four-year low on March 24, it gradually recovered the losses and climbed new peaks in December.
Foreign institutional investors net bought more than Rs 1.6 lakh crore of Indian equities in 2020, including a record monthly inflow of over Rs 70,000 crore in November after the US elections.
(Names of poll participants: Binod Modi, Head – Strategy at Reliance Securities | Prashanth Tapse, AVP Research, Mehta Equities | Ajit Mishra, VP Research, Religare Broking | Gaurav Garg, Head Research, CapitalVia Global Research | Vineeta Sharma, Head of Research, Narnolia Financial Advisors | Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services | Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities | Vinod Nair, Head of Research at Geojit financial services | Jyoti Roy - DVP- Equity Strategist, Angel Broking | Nirali Shah, Senior Research Analyst, Samco securities | Paras Bothra, President of Equity Research, Ashika Stock Broking | Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers | Ashis Biswas, Head of Technical Research, CapitalVia Global Research| Palka Chopra, Senior Vice President Master Capital Services)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.