The benchmark Sensex lost 451 points to hit a day’s low of 31,919.47 points on Friday. (Image: Reuters)
The key indices Sensex and Nifty are on a continuous rising streak since January 2017 except a few drops after August. Today itself was a very bad day for the domestic stock markets as both the key indices fell over 1% mainly because of North Korea fears on a possibility that it could launch another missile in the Pacific Ocean. Indian markets may see a 5-10% correction in the coming months, Nilesh Shah MD & CEO Envision Capital said in an interview to ET Now on Friday.
Sensex and Nifty plunged heavily on Friday on a possibility of North Korea conducting another hydrogen bomb test, this time in the Pacific Ocean. The benchmark Sensex shed 451 points to mark the day’s low of 31,919.47 points and the broader Nifty 50 index lost as much as 158 points to fall below 10,000 mark to 9,963.25 points. Both liquidity and earnings will be needed to drive markets next year and liquidity will be hugely supportive of the current bull market, Nilesh Shah said. There is some pressure seen on the banking space which in turn put pressure on the key indices, Nilesh Shah added.
Earlier this month, Porinju Veliyath, CEO and MD of Equity Intelligence India said that he was bullish on the prospects of domestic markets, adding that the Nifty could touch 12,000 by next Onam (August 2018). That’s not all, he said that the investors could look at a return of 30-40% in the next one year. When asked about his take on Nifty by next Onam, the ace investor told BTVI, “It’s very difficult to predict, because of saturated business in the composition of Nifty and Sensex. I used to predict it as there is no other way to make people bullish. Nifty can be 12,000, but investors can easily make 40% return.”
Also, Ridham Desai of Morgan Stanley had said in an interview with CNBC-TV18 that he expects the index to reach 30,000 points — that’s for NSE Nifty, not for BSE Sensex — in the next five years, on the back of renewed consumption, greatly improved exports and infrastructure spending by the government, This roughly works out to a CAGR of 25.33% for the Nifty over the next five years.
