Will Sensex hit 70,000 in 2022? Here’s what brokerages have to say

Majority of analysts on Dalal Street retained their bullish view on the domestic equity market for the New Year, citing expectations of strong growth in corporate earnings over the next few years.  The benchmark BSE Sensex and NSE Nifty index gained over 20 per cent in 2021. On the other hand, broader indices the BSE Midcap and Smallcap jumped more than 35 per cent and 60 per cent, respectively.

At least eight brokerages told Business Today that the domestic equity market may continue to give a double-digit return in 2022. Ruchit Jain, lead-research, 5paisa.com said, “Our markets have seen a corrective phase in last few weeks and this phase just seems to be a normal price-wise correction within an uptrend. Projecting by reciprocal retracement theory, we expect a conservative target of 20,000 in Nifty and aggressive targets of 21,300. For Sensex, our conservative targets are placed at 66,600 while aggressive targets are seen around 71,000.”

In the year 2021, equity markets witnessed a steady uptick on the back of persistent buying by institutional investors along with robust liquidity and improving macros. On the flip side, the identification of the omicron variant in late November brought some volatility in the last quarter.

Kranthi Bathini, equity strategist, WealthMills Securities sees Sensex in the range of 65,000-70,000 by the end of December 2022. He believes that Nifty will be around the 22,000-mark. “Reliance Industries, Larsen & Toubro, Macrotech Developers, ICICI Prudential Life and ICICI Bank are our top picks for 2022. Investors may also consider buying Piramal Enterprises on dips,” he said.

Yesha Shah, head of equity research, SAMCO Group argued, “Although markets can potentially give 10-12 per cent returns in 2022, it would be unwise to expect that markets will run up as swiftly as 2020-21. The easy phase of money-making is behind us and now the alpha will be generated by superior stock selection. Hence, a bottom-up approach would be most ideal to play 2022.”

Among other projects, Ajit Mishra, VP-research, Religare Broking sees Sensex at 64,000 and Nifty at 19,500 by December 2022. G Chokkalingam, Founder, Equinomics Research and Advisory has set a target of 63,000 for Sensex and 18,900 for Nifty.

Gaurav Garg, head of research, CapitalVia Global Research added that the year 2022 might be a roller coaster for the market due to the uncertainty around the “Omicron”, increase of interest rates and surge in inflation all around the world.  “If global and domestic cues are positive, we may see Nifty at 21,000 and Sensex at 70,000 respectively,” Garg said.

The 30-share Sensex traded around 58,390-mark in the afternoon trade on December 31.

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