Experts predict a Goldilocks scenario for markets as Nifty and Sensex decline.
The economy is expanding quickly, with 7% GDP growth in FY24 and 6.7% growth in FY25 anticipated, according to V K Vijayakumar of Geojit Financial Services.
The BSE sensex was down 0.15 percent, or 105.69 points, at 72,129.11, while the NSE nifty was down 20.75 points, or 0.01 percent, to 21,710.65 points. At 9.30 am on Monday, there were 3,891 stocks that were actively traded; 1,990 of them rose, 1,794 decreased, and 107 of them stayed steady. Of them, 220 stocks reached a 52-week high and six reached a 52-week low.
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Leading investment strategist at Geojit Financial Services, Dr. V K Vijayakumar, stated: “The economy and markets are in a Goldilocks situation as we start the new year.
The economy is seeing robust growth momentum. GDP growth of 7% in FY24 is probably going to be followed by roughly 6.7% growth in FY25, along with respectable corporate profitability growth. The macroeconomic indices are stable and the banking sector is in excellent condition. Following the general elections, political stability appears to be almost guaranteed.
The US economy seems to be headed for a soft landing from a global standpoint. The dollar index, at 100.6, and the US 10-year bond yield, at 3.87 percent, are positive factors supporting the market. FPI inflows should be strong in 2024.
The worry is that the majority of this positive news is reflected in the price, where valuations are a little high compared to long-term averages. Thus, the market is susceptible to corrections caused by dangers that are not yet known. Large-cap stocks offer safety because the overall market is overpriced.
Coal India (1.49%), Tata Motors (1.44%), Grasim (1.23%), BPCL (0.92%), and Nestle India (0.82%) are among the top gainers on the NSE at 10 am.
Eicher Motors (-1.79%), M&M (-0.90%), Bharti Airtel (-0.81%), Britannia (-0.79%), and Hindustan Unilever (-0.78%) are among the top losers as of 10 a.m.
Gains were evident as the BSE smallcap was up 0.70 percent and the BSE midcap was up 0.57%.