Market veteran Raamdeo Agrawal believes that the coming calendar year – 2022 – will see India’s benchmark equity index, Nifty end in the range of 17,000 to 18,000. With the 50-share index of the National Stock Exchange (NSE) currently hovering around 17,500-level, the estimates of Agrawal hint at quite a flattish year in terms of returns.
Last week, during an event organised by PMS Bazaar, a platform dedicated to portfolio management services (PMS) and Alternative Investment Funds (AIFs), the chairman of Motilal Oswal Financial Services said that he expects the Nifty to be between 17,000 and 18,000 when asked to state the 2022-end target for the 50-share benchmark.
Incidentally, a flat or a low single digit return in the next calendar year will be huge comedown as the Nifty is currently up nearly 25 per cent in the current calendar year till date. The Sensex has also gained nearly 23 per cent in 2021 till date.
Late last month, global financial major Credit Suisse had stated in a report that Indian equities were the most expensive in the Asia Pacific region and most of the positives related to expected recovery in the economy was already priced in. It further estimated a single digit return in 2022.
Meanwhile, Agrawal further said that the entry of a record number of new investors in the stock market has changed the structure of the markets as domestic investors have proved to be a strong force against selling by foreign portfolio investors (FPIs).
If FPIs are selling, retail investors are slowly absorbing that, said Agrawal who is known to be a value investor and keenly follows Warren Buffet as well.
While highlighting the fact that millions of new investor accounts have been created in the recent past, he said that an increasing share of household savings will make its way to the markets in the near future.
“Low fixed income yield is driving more capital allocation towards the markets. The economy will perform and more and more part of household savings will come to the market. The change is already visible,” said Agrawal while adding that digital onboarding has made it quite easy to invest.
He, however, added that regulators could look at further easing the investment process since “capital markets will become mainstream” for an increasing number of individuals and investors.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today