Nifty may stay in range between 15,000 and 19,000 for current year: Rahul Arora

Indian stock markets rallied after the Reserve Bank of India (RBI) decided to hike rates by 50 basis points. Markets ended a 7-day losing streak with Sensex gaining over 1,000 points and the Nifty rallying almost 300 points. Financials led the rally with the Nifty Bank Index gaining almost 3%.

However, for the week, Sensex and Nifty fell more than one percent. Metals stocks were the biggest losers, ending the week down more than 4%. Autos and financials were also down more than 2% for the week.

Rahul Arora, CEO of Nirmal Bang Institutional Equities, believes that Nifty could likely move in a range between 15,000 and 19,000 for the current year.

“If you look at the past two years of COVID, Indian corporate balance sheets are as healthy as they’ve ever been. Debts are at an all time low, cash flow is at an all time high, usage capacity is at 73%. So if you have a situation where capacity utilization is at 80%, you’re probably in a situation where earnings growth is going to be extremely beautiful,” he said.

“So if you look at the market from that perspective, you will be buying every dip. if it happens then, the pain might be slightly longer and you might have a situation where earnings growth might materialize, but it might not be supported by the kind of liquidity to buy the stocks you had over the past two years with a neutral year where the Nifty is likely moving in a range between 15,000 and 19,000,” Arora added.

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