Sensex snaps 3-day bull run; analysts expect Nifty to cross 22,900 in coming weeks

The benchmark indices Sensex and Nifty, which started FY25 with a bang, trading lower on April 2 as investors booked profits across several counters post three-day consecutive bull run.

Analysts, however, maintained that the market is on course to a bull trend, given most of the corrective action is over in the first quarter of this calendar year.

The Sensex was down 110.64 points or 0.15 percent at 73,903.91, and the Nifty was down 8.70 points or 0.04 percent at 22,453.30. The market breadth was in favour of gainers as about 2,664 shares advanced, 1,030 shares declined, and 118 shares were unchanged.

Experts expect the Nifty to climb higher and head towards 22,900 in the coming weeks.

"Empirically, in a general election year, markets have a tendency to bottom out in the first quarter of the calendar year, followed by rally towards general election outcome," analysts at ICICI Securities said.

The stage is set for the Nifty to rally towards 23,400 by election outcome, with a strong support placed around 22,100, they said.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services also believed that that every dip in this bull market will be bought by traders. "The bullish scenario is characterised by strong momentum and supported by sustained gush of capital flows into the market," he viewed.

However, he warned that investors should remain cautious on broader markets' front as liquidity is overwhelming fundamentals in several pockets.

Broader markets bucked subdued market trend as Nifty Midcap 100 and Nifty Smallcap 100 indices jumped over 1 percent on March 2. As a result, volatility cooled off, with India VIX falling over 2 percent to end at 11.7.

Sectorally, Nifty Realty index surged more than 2 percent to hit an all-time of 959.1 after global brokerage firm Morgan Stanley raised stock target prices of DLF, Prestige Estates, Godrej Properties, and Macrotech Developers.

Nifty Media, Nifty Metal, and Nifty Auto indices also joined the bull party and rose over 1 percent each on March 2. On the contrary, Nifty IT index was the top laggard as it slipped around 0.7 percent in trade, followed by Nifty Financial Services, and Nifty Pharma indices.

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