Analyst projections for Sensex and Nifty50 at the beginning of 2021 were quite bullish. But none of those forecasts were bullish enough to anticipate the record levels the two indices are ruling at today. Eight months into the year and these indices have rallied 20 per cent each. The broader market participation has been even stronger, with the BSE m-cap rising 32 per cent year-to-date to hit Rs 250 lakh crore mark this past week.
What has changed? Where is the market headed? How should investors position themselves? These are a few questions Aditya Khemani, Fund Manager at Motilal Oswal AMC, addressed in ETMarket.com’s special weekly podcast this week. Khemani said one need not look into the rear mirror and must have only reasonable return expectations as valuations at present are factoring in strong earnings growth ahead.
Welcome to the show, sir.
1) Analysts in an ETMarkets survey for 2021 suggested a maximum target of 51,500 for Sensex and 15,100 for Nifty50. In eight months into the year, these indices are mocking at those targets. What has changed really?
2) Broader market participation has been strong and while smallcaps have led the rally, their premium to largecaps is falling. Do you think the smallcap rally is a genuine one and there is more room ahead?
3) What will be the biggest challenge for markets from here on?
4) IT stocks are clearly seeing strong buying, while banks are lagging? Where is it you see money being made in the next 12-18 months?
5) How strong has been the retail participation in this rally? What would be your advice to retail investors?
Thank you Mr Khemani. That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts twice every day. Stay safe and Happy Weekend!