




Ahead of the budget announcement, the sole index winners were Nifty Realty and Nifty FMCG.
'Only meaningful upgrades in forward estimates could support such elevated multiples, and we do not see that in the next 1-2 quarters,' said Emkay.
Markets have been on a tearaway rally, with both benchmark and broader indices making a series of fresh highs. Upcoming Q1 earnings will show if the valuations hold. Moneycontrol Analysts' Call Tracker for June shows what analysts think of stocks across various sectors.
The benchmark index Nifty 50 will also see certain changes in weightage across key stocks.
"A visible disconnect appears when the sector earnings revision is seen against the price movements," said Bernstein.
An analysis of performance of stock markets over different coalitions puts UPA 1 and UPA II on top of the chart.
The next set of cues for the domestic markets will be found in the full Union Budget, which will be presented in early July 2024, said Nomura.
As markets absorbed the news of the NDA coalition winning the majority, the initial fears of instability gave way to optimism. Markets have sharply rebounded, realising that the NDA coalition government could still be stable.
After the massive fall on Tuesday, experts do not anticipate any further major crash in Nifty, unless major support levels are breached
Market experts believe that as long as the incumbent government returns to power, policy continuity is likely.
The mandate, which has captured a tighter contested between ruling NDA and the INDIA alliance, has sent the benchmark Nifty 50 Index to its biggest intra-day drop in over four years.
The sharp spike in FIIs' short bets in the Indian derivatives market ahead of the exit polls has created a trade setup that positions the market in a multi-week upward rally, believes Rohit Srivastava of Indiacharts.
Stocks influenced by the government's economic agenda have risen sharply over the past year, and the trend is likely to continue.
As long as BJP secures enough seats to form a government, it will establish a sense of continuity in the market, said Samir Arora.
The market bias has turned bullish for the short term, with the NSE Nifty 50 index witnessing heavy short covering in the futures space, followed by long additions.
The expectation of the incumbent government returning to power and ensuring political continuity has led to an optimistic market sentiment.
Bernstein expects Nifty to see high single-digit to low double-digit returns in 2024 if the BJP wins more than 290 seats in the ongoing Lok Sabha elections.
For large-cap exposure, a passive strategy is the way to go. And in that, the Nifty50 is a sufficiently good option.
On May 7, Sensex closed 383 points (0.5%) lower at 73,511.85, while the Nifty 50 fell 141 points (0.6%) to 22,301.50
As the fourth quarter earning results trickle in, experts have noted that the commentary surrounding the FMCG sector has mostly been positive.