The Indian stock market, which has seen a major correction since June end is likely to clock record highs by the end of this year, believes Ashish Chaturmohta, Managing Director, PMS at JM Financial. In an interview with BTTV’s Shailendra Bhatnagar, Ashish said the stock market has face a lot of uncertainty due to the ongoing row between India and US over tariffs.
Despite this uncertainty, market is trying to form a base above its 200 day moving averages. The reecnt positive sentiment in the market is supported by a lot of India specific macros which are improving. For example, PMI manufacturing index is above 55 levels and Q1 GDP has come around 7.8%, the market analyst said.
He cited good monsoons, strong expectations for festive season, expected GST rate rejig which will likely spur consumer sentiment and Budget tax sops for income till Rs 12 lakh level behind the positivity in consumer-related and consumtion-related themes.
According to Ashish, there’s a good possibility of Nifty recovering towards 26,000 to 26,500 by December or maybe by March 2026.
If market reaches this level, Nifty would have breached its record high of 26,277 which it reached on September 27, 2024. Sensex too hit a record high of 85,978 in the same session.
Meanwhile, the market analyst is bullish on EMS stocks such as Amber Enterprises, Dixon Tech and Syrma SGS and Kaynes Technology in terms of both technical and fundamental analysis.
On the outlook of the silver prices which are trading at record high,Ashish says silver is looking very strong due to the demand supply perspective. There is a deficit in silver.
Also there has been a very strong under performance of silver against gold for a very long time and this has started catching up of late.
“So I think it is going to continue. If you look at the longer term chart, silver has still not reached its 2008-2009 kind of highs which it saw in dollar terms. So I think there is further scope for silver to see a sustained trend and with a lot of industrial usage and usages into EV segment or clean tech or new energy segment, there is a lot of usage of silver.
In case of gold rally, he says that a lot of central banks are accumulating gold and there is a kind of de-dollarization of trend is also pushing buying interest for gold. “So both these precious metals we believe is going to outperform at least from next 6 to 12 month perspective,” he adds.
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