New Delhi: Bulls have maintained their hold in the stock market for the last few days, and despite weak Q2 results and reduced GDP figures, investor confidence has not weakened. In the last five trading sessions, the Sensex jumped more than 3,000 points and crossed the 82,000 mark, while the Nifty also crossed the 24,800 level.

FII Active

The rally started around the results of the Maharashtra assembly elections and is now being fuelled by foreign institutional investors (FIIs). According to data, foreign investors have invested about Rs 13,900 crore so far in December after selling about Rs 1.15 lakh crore in October and November.

FII's buying mood, banking stocks strong

Dr. VK Vijaykumar, Chief Investment Strategist, at Geojit Financial Services, says that FIIs becoming buyers is a positive sign for the market, especially in the larger market. Bank Nifty is likely to touch an all-time high due to the strength of banking stocks, which can also lead to a rise in the Nifty. On Thursday, the Sensex saw a jump of more than 1,300 points, which was due to positive trends in global markets.

US Federal Reserve Chairman Jerome Powell's statement said that the economy is in great shape. This also led to a rise in the US markets, which also created an atmosphere of optimism in the Indian markets.
 

India's macroeconomic fundamentals are strong

After going through an economic slowdown in the first two quarters, it is expected that the economy is now likely to improve due to the increased expenditure (capex) by the government. Neeraj Chadawar of Axis Securities says that the Indian economy is in a strong growth position and it is a symbol of stability amid global economic instability. He estimates that Nifty's earnings may grow at a spectacular CAGR of 14% during FY23-27.
 

Nifty has a target of 28,700

The brokerage's target for Nifty for 12 months is 26,100, while in a bull case, it can go up to 28,700. Market analysts are also expecting that RBI may change its monetary policy due to weak Q2 GDP figures. Analysts believe that if RBI's stance is dovish and FII's buying spree continues, then Nifty may rise further.