Nifty can break the level of 26500 in 18 months, NDA’s return will give a boost, make a multicap strategy in investment

Stock Market Outlook :Recently, a record rally was seen in the stock market and the Sensex has crossed 76000 for the first time and the Nifty has crossed 23000 for the first time. Before the election results (General Election 2024 Result), this rally has been seen in the hope of the return of the NDA government. However, before the results come on June 4, there is volatility in the market. Portfolio management services company MK Investment Managers believes that the stock market outlook looks better for the financial year 2025 and financial year 2026. During this time, earning growth is also expected to remain strong. MK Investment Managers believes that if the NDA government returns, there will be continuity at the policy level and the market will get strong support.

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Nifty 26500 by December 2025

MK Investment Managers says that the market outlook is better. With 15 percent earning growth, Nifty can touch the level of 24500 by the end of December 2024. At the same time, by December 2025 i.e. in 18 months, it can reach the level of 26500.

focus on election result

According to the report, the market’s focus is currently on the results of the General Election 2024. The market is expecting the return of the NDA government and if the NDA government returns as per the estimate with 330 seats in the base scenario, then the market will get strong support from it. This will maintain continuity at the policy level with land, labor and judiciary reforms at the central level. This is positive for the stock market.

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Long Term Sentiment

According to the report, the near term sentiment is the election results. In the long term, factors like geo-political development, elections and results in America, elections and results in Britain, US Fed’s decision on rate cut will be the major sentiments for the domestic stock market.

Multicap approach will be beneficial

EIML has advised investors to follow a multicap approach right now, in which it is important to have the right balance of largecap and midcap stocks in your portfolio. There is scope for growth in both these categories in the coming days. In the mid-term, most of the delta is expected to come from the broader market.

Manish Sonthalia, Chief Investment Officer, Emkay Investment Managers Ltd, said that BFSI, PSU and industrial sectors are expected to perform well. BFSI has led in earnings growth and has seen valuation improvement. Investment-related themes will come into play in the next 3 to 5 years with the build-up of power capex. We are rerating public sector units as some government units will benefit in sectors such as defense, oil marketing companies and power financiers. After being in a post-Covid slowdown, pharmaceuticals are expected to see a turnaround. Consumer discretionary is seeing a K-shaped recovery, while the entry level segment is still not performing well.

Monsoon Stocks: There are chances of heavy rains in the country this year, if the monsoon is better then these stocks will show their strength

Keep an eye on these sectors

Consumption :With per capita income rising to US$4,500 by 2029, there will be greater consumption of discretionary items.

Manufacturing : Specialty chemicals, pharmaceuticals, automobile and electronic manufacturing services are likely to benefit from China+1 and Europe+1.

Green Energy : Solar and wind energy transformation is expected to become mainstream in India. The value chain on the power side is expected to benefit massively.

Digitization and AI:India will be at the forefront of innovation in technology.

Financialisation of Savings : Investment platform providers will benefit from the transfer of investments from fixed income to equity.