Market Ahead Podcast, September 17: Factors That May Guide Markets Today

On Thursday, the Sensex BSE crossed the 59,000 mark for the first time, hitting a new high of 59,204. The Nifty50, meanwhile, hit a new lifetime high of 17,645.

Going forward, market watchers are betting on a rapid move towards 20,000 for Nifty and 66,000 for long-term Sensex.

Rahul Sharma, co-founder of Equity99, attributed Thursday’s stellar move in the markets to various government-introduced PLI programs, bargain hunting in bank stocks and the overall economic recovery.

In the near term, he expects the Nifty Index to hit 18,000 and the Sensex to claim 60,500, despite intermittent corrections.

Echoing similar views, Santosh Meena, head of research at Swastika Investmart, expects the 30-stock pack to cross 60,000 over the next fifteen weeks, but sees a correction in October.

On Friday, all eyes would be on banking stocks following the announcements made by Finance Minister Nirmala Sitharaman on Thursday after market hours.

Automotive stocks, especially two-wheeler manufacturers, could remain on the agenda, and the government’s 26,000 crore PLI program is expected to benefit the segment the most.

According to D-Street experts, the program will lay a solid foundation for the rapid adoption of electric vehicles in India. This will give two-wheeler manufacturers a boost, but four-wheel manufacturers will have to accelerate.

In the telecommunications space, the government’s four-year respite for businesses from paying spectrum and adjusted gross revenues has inflated related stocks.

Tech charts suggest a 7% rise in the BSE Telecom index, up to 17% for Airtel and a whopping 25% rise for Vodafone Idea.

Basically, analysts expect the measures to significantly eliminate the “going concern” risk for VIL and result in cash savings of $ 11 billion through FY 25. They will, however, monitor the tariff path in the future.

Equity-specific triggers, global indices, and foreign fund flows will drive the overall market mood.

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