Stock market seen rising 9% in 2024 with new highs in June: analysts poll

Stock market has already risen 1% this year. A correction in the next three months is unlikely, say analysts polled by Reuters.

India's stock market may surge to new highs by the end of June and gain nearly 9% in 2024, according to analysts polled by Reuters. A correction in the next three months was unlikely, they predicted as the BSE Sensex index climbed nearly 19% last year on expectations that India's economic growth will outpace its peers. In January, the benchmark index breached the 73,000 mark for the first time. It is up over 1% this year already.

Stock market news: A man walks past the bull statue at BSE building in Mumbai.(PTI)

What's the 2024 prediction for Indian stock market?

The Reuters poll of 28 equity analysts forecast the Sensex index would add another 4% and reach high of 76,000 at the end of June. This is set to be far above the 70,000 level expected in a November poll.

Will the markets rise ahead of Lok Sabha elections?

Stock market could rise driven by expectations that PM Modi-led BJP will retain power in the upcoming Lok Sabha election.

What analysts say about the stock market and India's economy?

Neeraj Chadawar, head of quantitative equity research at Axis Securities told Reuters, "The Indian economy remains a 'star performing' economy against other emerging markets. Moreover, we firmly believe it will likely continue its growth momentum in 2024 and remain the land of stability against the backdrop of a volatile global economy. The entire setup for the market is very constructive at this level because the market is looking at the policy continuity in the upcoming national level election."

What are the chances of a market correction in 2024?

A near 60% majority of respondents said it was unlikely that market correction would take place. Rajat Agarwal, Asia equity strategist at Societe Generale said, “It is very difficult to call whether there is a major correction. But right now I think India is in a good macro situation and the concerns are more around a little bit of high valuations than anything else.”