Nifty at 18,000: Are we done with this rally?
Nifty has touched 18000 because the undercurrent in the market is robust. India, for the first time, witnessed 10 crore demat accounts, and we are also seeing how FIIs have come back strongly. Even the volume in the market has improved significantly. India Inc’s earnings and their commentary continue to make us believe that India is on a growth path. At the same time, the report from Moody’s also suggests that global events will not impact India’s growth story. The moot question that comes to mind is, are we done with this rally?
The answer is a firm no. We are confident the market will continue to do well as levers for growth continue. India’s PLI scheme, China plus one strategy, India as among the fastest growing economies in the world and inflation continuing to remain soft are all indicators that the market should do well. India is in a very sweet spot where growth would be high and inflation low. These two combined are rare to find in a volatile world economy. No fund manager can afford to ignore this.
Therefore, we believe that 18k is just a number and that Indian indices will continue to rise even further.
Sunil Damania, Chief Investment Officer MarketsMojo