‘The party on Dalal Street ain’t over yet. Stay tuned’

Mumbai: The Nifty hit 14,000 for the first time on Thursday —the last day of 2020 but investors should stay put in 2021 as there is still some more steam left in the bull run, a majority of participants in an ET poll of 25 fund managers, brokers and analysts said. The most bullish among the poll participants expect the Nifty to rise as much as 15% this year from current levels. Mid and smallcap shares could outperform blue-chips in 2021, they said.According to 75% of the poll participants, equities remain the top asset class and investors are advised not to cut exposure.“All the stars are aligned for markets to go up,” said Nilesh Shah, MD, Kotak Asset Management.While majority of the participants are bullish about the market prospects, 68% of them expect the Nifty to touch 14,500-15,000 in 2021. This is about 3-6% over Thursday’s closing of 13,981.75. The index closed unchanged over the previous day after touching a high of 14,024.85.80054515About 16% see Nifty at 15,000-15,500 level, while 21% expect it to touch 16,000-16,500. Only 5% of participants predicted the Nifty could remain below 14,000.Investors may, however, have to brace for sharp swings in 2021 as volatility in the pace of flows from foreigners, which has been the main driver for the markets in the later part of the previous year, could lead to sharp reversals.“We may see a rapid rise followed by a correction,” said Motilal Oswal Financial Services’ chairman Raamdeo Agrawal, who expects the main indices to end 2021 with 12-15% gains.

from Economic Times https://ift.tt/2L86wWT