Global brokerage firms have expressed confidence that Indian stock markets will remain bullish during 2021.
Global brokerage firms BNP Paribas and JP Morgan are still confident of a rebound in the Indian stock markets, though the Indian economy and the Indian stock markets have not kept pace. . He believes that the pace of Indian stock markets will continue in 2021 and they will reach new heights.
- Last updated:
December 15, 2020, 9:16 PM IST
The stock market has risen 70 percent since April 2020
Brokerage company BNP Paribas believes that with India’s urban income declining, persistently high inflation and the question of the quality of bank accounts is a cause for concern. In the early days of the Koro crisis, Indian markets were down 30 per cent. After this, the market conditions have improved strongly. 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 available globally. At the same time, investors are thinking that they are betting on the long-term prospects of the Indian economy.
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Analysts at BNP Paribas said that if investors question the choice of a particular stock, India is benefiting in two ways. Shares are getting bigger and bigger. At the same time, quality stocks are widely available in India compared to the rest of the Asian markets. The state of economic recovery in India is very good. Vehicle sales, steel, cement consumption and railway transport reach or above the pre-Covid-19 level. The domestic stock market has strengthened by 80 per cent since its March 2020 low. At the same time, if we talk about the year 2020, the market has grown by 12%. However, brokerage houses are still witnessing a rally in the market.
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Business activities have been very weak so far
Global brokerage house JPMorgan believes the Nifty could touch the 15000 level by December 2021. JPMorgan said the Indian economy is not yet strong enough for economic growth based on better revenue estimates. The Indian economy is recovering fast now, but consumer confidence and income-wages are still weak. According to JPMorgan, estimates on gross domestic product (GDP) have improved, but business activity has so far been weak to improve earnings.