Bull Run to continue in 2021; Sensex to touch 50,000 next year: BNP Paribas

The Indian stocks markets have been witnessing a bull run in recent times with indices jumping more than 11 per cent in November. The Indices have jumped multi-fold since India’s worst-ever GDP performance in the June quarter and the future also looks promising amidst better than expected economic recovery.

BNP Paribas, the French Bank’s India unit has maintained an overweight rating on Indian equities for the next year. The Bank has predicted the S&P BSE Sensex to hit 50,500 levels next year – up nearly 9.5 per cent from the existing levels.

BNP ParibasREUTERS

As per a report in Business Standard, BNP Paribas has also maintained a positive outlook for other Asian markets including China, Indonesia, and Korea. It has included ONGC and Marico among Indian stocks in its model portfolio and has dropped Britannia. India’s gross domestic product (GDP) is expected to rise by 11.6% in 2021 and 5% in 2022 after an estimated contraction of 11.4% in 2020. Consumer Price Index (CPI), it said, is expected to be 4.3% in 2021 and 3.8% in 2022.

The emphasis on some long-range economic plans aimed at boosting consumption in China and promoting investment in India is a popular thread running between these two Asian economies, BNP Paribas said. Manishi Raychaudhuri, Head of Asia Pacific equity research, BNP Paribas in his Asia Strategy 2021 report wrote, “We continue to focus on quality and market leaders in India.

Bombay Stock Exchange

Bombay Stock ExchangeINDRANIL MUKHERJEE/AFP/Getty Images

Private Banks and insurance companies should continue to benefit from market share gains. Consumer stocks benefitting from domestic rural demand and service exporters benefitting from reviving global deal flow shall continue to dominate the investment landscape.”

Nomura also gives a positive outlook

Nomura India has also given the same prediction for India. The Nomura India Business Resumption Index (NIBRI), a gauge to track the level of economic activity in the country in the Covid-19 pandemic, shows that the economic activity has jumped to 92.9 for the week ending December 13 from 89.6 in the preceding week. 

Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

Depreciation on goodwill – caution!

India's Union Budget 2021 made changes in the provisions relating to depreciation on goodwill, which is an...

Covid-19 | U.S. allows fully vaccinated people to forgo masks indoors

The CDC guidance still calls for wearing masks in crowded indoor settings like buses, planes, hospitals, prisons and homeless shelters. In a major step toward...

Covid-19 | Allow Public Accounts Committee to discuss vaccination policy, says...

It should be allowed to discuss matters of larger concern, he tells Speaker Om Birla. Congress leader in the Lok Sabha Adhir Ranjan Chowdhury, who...

State incentivises manufacture of oxygen

Govt. announces capital subsidy The State government on Thursday announced incentives for companies willing to manufacture medical oxygen in the State.The government announced that companies...

Don’t reduce vaccine supply to State: HC

The Madras High Court on Thursday ordered that the Centre should not reduce the allocation of COVID-19 vaccines to Tamil Nadu just because the...

More Articles