Mumbai, Jan 1: The stock market that set many benchmarks in 2017 and then broke them will continue their golden run 2018 as well. However, experts believe, the levels of return may not ne the same.
A report in an economic daily said that Bombay Stock Exchange’s Sensex will touch 38,000 by the end of 2018. A poll was conducted by the daily in which 20 per cent respondents said that the Sensex might breach the 40,000 mark.
Two main benchmark indices– Sensex and Nifty– took giant leaps this year. While the Sensex gained nearly 28 per cent, crossing the 34,000 mark as the year ended, Nifty also gain 28.6 per cent to 10, 530.70.
19 per cent economist quizzed by the Economic Times said that rising crude oil prices might be the biggest reason to lower the level of returns than in 2017. This is because India imports 2/3 of its oil requirement and a raise in fuel price will directly impact the pockets of the common man. The corporate earning might go down, and inflation up– this is another worry for the market. Though there is liquidity due to mutual funds, the macro-economic factors are not good.
Another key factor that will impact market performance is eight state assembly elections slated to be held in 2018. This includes BJP ruled states of Rajasthan, MP, Chhattisgarh, and Congress ruled Karnataka. In states like Rajasthan and Karnataka, BJP and Congress have a close fight.
“In 2017, markets delivered excellent returns with low volatility. Given the current valuations and some other developments, we will see more volatility in 2018. One needs to moderate their return expectations,” said Navneet Munot, chief investment officer at SBI Mutual Fund, told Economic Times.
Alkem Laboratories, Bank of Baroda, Bharti Airtel, Havells India, Hindustan Petroleum Corp, ICICI Lombard General Insurance, Larsen & Toubro, Jyothi Laboratories, State Bank of India, South Indian Bank, HDFC Bank, Maruti Suzuki India are the shares than can do well.