Market Momentum Could Propel Sensex To 90,000 And Nifty To 27,000 By December

Market Momentum: Sensex and Nifty, the two key Indian equity benchmark indices, could reach their respective peaks by the end of December. Market experts predict that Sensex might touch the 90,000 mark by year-end, while Nifty50 is expected to hit an all-time high of 27,000 levels in the near term.

Abhishek Khudania, Senior Executive Director at Wealth, Client Associates, remarked on the market's fascination with reaching new highs. He drew a parallel to Newton's First Law, suggesting that the market's momentum could continue unless interrupted by external forces. "The last few highs of Sensex have been in record time periods of around 140 to 160 days, and if this were any indication, we could probably touch the 90,000-mark by end of December 2024," he told ABP Live. However, he cautioned against relying on mathematical extrapolation, noting that market behaviour is rarely predictable.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities Pvt Ltd, commented on the current market momentum, indicating that continued liquidity flows and positive sentiment could propel the market to even higher levels. "Market can touch 90,000 levels also," Bathini said. "The kind of the momentum that's going on in liquidity flows and positive sentiment, market can hit the 90,000-mark in the near-term," he said.

However, he cautioned about potential risks, citing geopolitical tensions and volatility. "With the coalition government back, we have to remain watchful," he said.

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Bathini highlighted that policy continuity and domestic growth are crucial factors bolstering the bullish market sentiment. He noted that ongoing liquidity from both foreign and domestic investors could push the Sensex to 90,000 and the Nifty to 25,000 in the near term. He highlighted the importance of monitoring RBI's policy decisions, suggesting that a rate cut could boost market sentiment and corporate earnings.

On the other hand, Khudania underscored India's structural growth story and reasonable valuations in the large-cap space, which are attracting positive Foreign Institutional Investor (FII) flows. He pointed out that continued policy initiatives and reforms, if announced in the upcoming Budget without fiscal surprises, could maintain the market's momentum. "Reaching 90,000 on Sensex or 27,000 on Nifty is the next milestone to watch," he mentioned.

The overall outlook remains optimistic, supported by stable earnings growth, positive sentiment, and liquidity, positioning the markets on a firm footing, he added.

The 30-share BSE Sensex reached an intraday record of 80,392 early in the session. Despite some volatility and profit-taking at record levels, the Sensex managed to close 62.87 points higher at 80,050 — its highest closing level ever.

Similarly, the broader Nifty index hit an intraday peak of 24,401 before ending almost flat. The 50-issue index edged up by 16 points to settle at a record 24,302, with 23 of its components closing in the green and 27 in the red.