Indian Stock Market Outlook Year 2020
What a year 2020 has been turned for an Indian stock market. Almost after the decade a huge downfall, or we can say stock market crash was seen at the end of March 2020. This time the reason was an unique, unknown virus spread across worldwide called Coronavirus (Covid-19) impacts on health and wealth badly to many individuals.
During pandemic huge outflows of money from the stock market and mutual funds has taken place in fear of uncertainty disease and the new initiative taken by the govt so-called nation lockdown created a panic across the investors. Before it sorted, the share price and index have fallen 45% from its recent high within a short span of time. Blue-chip or large cap shares like Reliance Industries, TCS, Infosys, HDFC Group, Bajaj Group etc has corrected price in a huge percentage.
Lockdown and Shutdown had left no options for an individual to generate income sitting at home. Stock market was the only idle decisions to get involve for survival during pandemic. Hats off to those who tooks courageous decision to make investment in the stock market at the right time during panic situation which help them earn lots. As the market have been discounted very much from it’s peak. The most vitol role during pandemic has been played by few large government institutions and mutual funds company who brought stability and liquidity by inflowing money in the stock market.
There was a head-to-head buying and selling from the both ends by DIIs and FIIs during the pandemic. The Nifty fall from 12400 to 7500 was a dream or shock for an investors. Although a swing rally in the recession period created wealth for long term investors in which Nifty swung from 7500 to 13800 and still continuing. The year 2020 has taught us many lessons not only to take care of health as well as to manage diversify wealth. Coming to the point, many veteran stock traders and investors were in shock irrespective of lockdown with no business outcome, how could the stock market manage to rise so much. To be simple, money speaks when whole world money starts getting invested in stock market there technical and fundamentals don’t work.
To get rid from Corona Virus, vaccine trial is going on tested. Now people in stock market is waiting for one correction 10-15% rather than vaccine. Well no ones know the exact time for market correction. Until and unless a new negative news inflow all around. The liquidity in the market and the new opened demat account holders money is now speaking a lot. At every fall there comes buy which prevent market fall. And in hope India would be a superpower country in coming years bringing back manufacturer company to India. FIIs were investing in Indian Stock Market at huge numbers.
To be genuine as a stock market analysis, is there any maximum target for Nifty Index Future by the end of December 2020. The bullrun rally is still in continue globally and as per the views of market experts, Nifty might moves up to 13800, 13900, 14200 etc. Though previous Nifty 52 weeks high was 12400.
To be fact nobody can predict an exact highs of Nifty Index in bullrun and lows in bear market. As inflows are huge by the foreign institutional investors (fiis) in indian stock market reasons there are many fundamental stocks are available at a cheaper price inspite of Index hitting it’s all time high. Few stock names I can take like Bajaj twins, pvt banks (indusind bank, axisbank etc), oil sectors (ioc, hocl bpcl), infrastructure and many small-midcaps like vipindustries, Raymond, varroc engineering, bataindia etc.
December Q3 results and March Q4 results might bring back some changes in stock market seeing their results. These coming two quarters will be much important for many big corporates. I hope will do better results compare to last two quarters.