‘Nifty to touch 19,500; Sensex at 64,500 by Dec 2023’

In its market outlook, Emkay Institutional Equities has said it expects Nifty to reach 19,500 and Sensex to touch 64,500 by December 2023, a 7-8% increase from the current levels.

The company said that the growth will be led by profits of banks, auto equipment manufacturer and ancillaries, oil & gas and the IT companies. These four sectors are likely to contribute 70% of the total market growth in CY 2023, said the company.

In a press release, Nirav Sheth, CEO – Institutional Equities, Emkay Global Financial Services said, “The movement of the dollar index continues to be a cause of concern due to the sheer impact it has on multiple things. We expect a further instalment of rate hike by the US Fed and the RBI thereby strengthening the respective currencies. We expect RBI to go on a long pause by 2QCY23.”

Sanjay Chawla, Head, Institutional Research, Emkay Global Financial Services said, “Higher-for-longer interest rates and a sudden rise in Brent crude oil prices are potential challenges for the market in the next 6-12 months. A capex intensive budget by the government may spur investment; however global and domestic growth uncertainties may act as an impediment. Given the current scenario we see Nifty-50 fair value of around 19,500 by end CY23; we expect aggregate profit growth of Nifty-50 to be fairly resilient at around 15% in CY23.”

Nifty-50: Estimated sector-wise contribution to PAT-increase in FY23E and FY24E