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    ETMarkets Survey | Bulls all set to ride Nifty50 above 18,000 in November

    Synopsis

    Nifty50 is expected to remain above the 18,000 mark and Sensex above the 60,000 level at the end of November, according to a survey conducted by ETMarkets with 15 brokerages. On Monday, Nifty50 and Sensex ended above the 18,000 level and 60,000 mark respectively, for the first time since September 14. Nifty50 has risen 5.5% in October after having lost nearly 4% in September.

    ETMarkets Survey | Bulls all set to ride Nifty50 above 18,000 in NovemberiStock
    The recovery that Indian equities saw in October after a tumultuous September, has turned the table in favour of the bulls, who are seen taking Nifty50 and Sensex further higher in November.

    Nifty50 is expected to remain above the 18,000 mark and Sensex above the 60,000 level at the end of November, according to a survey conducted by ETMarkets with 15 brokerages.

    On Monday, Nifty50 and Sensex ended above the 18,000 level and 60,000 mark respectively, for the first time since September 14. Nifty50 has risen 5.5% in October after having lost nearly 4% in September.

    A sharp recovery in global markets, encouraging second-quarter earnings, particularly that of banks, and the festive mood in the domestic market drove the gains in Indian equities last month.

    "The ongoing rally which has taken the Sensex above 60000 has been triggered mainly by the rally in the mother market US, where the Dow (Jones index) has recorded 4 straight weeks of gains,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

    Nifty November 2022ETMarkets.com

    Sensex November 2022ETMarkets.com

    EVENTFUL NOVEMBER
    The bullish undertone for the market is despite the prevailing macroeconomic headwinds and the key events and data points lined up.

    The US Federal Reserve’s crucial two-day monetary policy meeting starts on Tuesday, and the central bank is widely expected to raise interest rates by 75 basis points for the fourth consecutive time in order to bring down stubbornly high inflation.

    “The market which had discounted an immediate recession is now discounting a possibility of a soft landing for the US economy, that is, the Fed might succeed in taming inflation without pushing the economy into recession,” Vijayakumar said.

    Immediately after the Fed meeting is the Reserve Bank of India’s off-cycle meet on Thursday, which is likely to draft an explanation on the failure to adhere to the inflation target for three consecutive quarters.

    Against RBI’s targeted range of 2-6%, domestic consumer price inflation averaged 6.3% in January-March, 7.3% in April-June, and 7% in July-September, indicating the central bank’s failure in its inflation mandate.

    Therefore, investors’ eyes will be glued to the outcome of the meeting.

    Apart from the central bank meetings, crucial data points such as the domestic and US CPI inflation for October, jobs report, and midterm elections in the US are other monitorables during the month.

    BULLISH UNDERTONE
    Despite an eventful month, analysts see lesser chances of volatility in the market, the survey showed.

    “The last phase of aggressive rate hikes are coming to an end post US Fed, ECB and MPC meetings in the next action-packed seven days,” said Vikram Kasat, head - of advisory at Prabhudas Lilladher. “FIIs gave up all their short hedges overnight on (October) expiry.”

    Data showed that FIIs turned net buyers of Indian equities in October after September’s sell-off.

    One of the other factors that could contribute to the gains in equities in November is a stable currency.

    ETMarkets survey showed that most market participants see the rupee hovering between 82-83 levels against the dollar in November.

    The rupee depreciated close to 2% against the dollar in October and hit a record low of 83.2850.

    SECTOR WATCH
    One of the sectors that is widely expected to aid the upmove in benchmark indices is banks. The banking pack outperformed in October, with Nifty Bank gaining nearly 7%.

    More than 62% of the respondents see similar gains for the sectoral index in November. Nearly 38% of the respondents see banks outperforming and leading gains in benchmark indices this month.

    Besides banks, analysts see defensive sectors doing well in November.

    Sectors November 2022ETMarkets.com

    (The ETMarkets survey includes responses from LKP Securities, Religare Broking, Samco Securities, Edelweiss Financial, ICICI Securities, Axis Securities, Prabhudas Lilladher, Sharekhan, Asit C Mehta, Reliance Securities, Motilal Oswal Securities, MarketsMojo, and Ashika Group)

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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