Global brokerages are confident that the Indian stock market will remain bullish by 2021.
Despite the slowdown in the Indian economy and the Indian stock market, BNP Paribas and JPMorgan still believe in the rise of the Indian stock market. . He believes that in 2021, the momentum of the Indian stock market will continue and it will reach new heights.
- Last updated:
15 December 2020, 9:16 PM IST
The stock market has risen 70 percent since April 2020
Brokerage company BNP Paribas believes that urban income in India is declining, persistent inflation and the question of the quality of bank accounts remains. The Indian market had shrunk by 30 per cent in the early days of the Corona crisis. Since then, market conditions have improved significantly. The stock market has risen nearly 70 percent since April 2020. Critics say Indian markets are setting records due to the large amount of cash in the global market. At the same time, investors are skeptical of the long-term prospects of the Indian economy.
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Analysts at BNP Paribas have said that India is benefiting in two ways if investors question the choice of certain stocks. Shares are getting bigger day by day. At the same time, India has a large supply of quality stocks compared to the rest of the Asian market. The economic recovery situation in India is much better. Vehicle sales, steel, cement consumption and railway transport are at or above the level of Covid-1 pre. The domestic stock market is 80 per cent stronger than the March 2020 low. At the same time, the market has grown by 12 per cent for the year 2020. However, brokerage houses are still seeing a boom in the market.
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So far the work in the business has remained very weak
Global brokerage house JPMorgan believes that the Nifty could reach the 15000 level by December 2021. JPMorgan said the Indian economy is not strong enough for economic growth in terms of good earnings estimates. The Indian economy is now recovering rapidly, but consumer confidence and income-wages are still weak. According to JPMorgan, estimates of gross domestic product (GDP) have improved, but business activity to improve earnings remains weak.