Majority of investors optimistic about the continuation of market rally: PHD Chamber

In a quick survey conducted by PHD Research Bureau, the research arm of PHD Chamber of Commerce and Industry, observed that 60% of the investors in the stock market are optimistic about the continuation of current rally and expect more than 10% returns in the short run from the current level.

Markets are expected to scale new highs of which BSE Sensex is expected to surpass 35,000 and NIFTY is expected to surpass 11,000 by the end of the year, according to the survey of investors.

SENSEX closed at 32,325.41 & NIFTY closed at 10,066.40 on Friday, 4th August 2017.

The quick survey is based on the 243 responses from the retail investors and HNIs.

Key findings

·        Majority (60%) of the respondents said that the markets will rise by more than 10% from the current level

·        25% of the respondents said that the markets will remain lackluster at the current leve

·        15% of the respondents said that the markets will decline by 10%

PHD Chamber organized an open house discussion on stock markets on Where the stock markets are headed and why . Mr. B K Sabharwal, Chairman, Federation of Indian Stock Exchanges; Mr. Vijay Mehta, Chairman, Economic Affairs Committee, PHD Chamber; Mr. Rajeev Garg, Additional General Manager, BSE Ltd. among others participated in the Open House Discussions.

Majority of the participants were positive and optimistic about the bull run in the stock markets.

Strong fundamentals of the economy such as low inflation, fiscal prudence, benign external sector conditions and strong outlook of the economy going forward are supporting the markets at this juncture said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry, in a press statement issued here today.

However, stability of the inflation rate, international commodity prices such as crude oil, continuation of the pace of economic reforms and uptick in private investments would be crucial for a strong and sustained rally in the markets, he said.

So, one has to be very cautious about the rally in the markets with informed decisions, said Mr. Jiwarajka.

Interestingly, retail participation in the stock markets has seen progress. Retail investors’ holdings in listed companies is increasing vis-à-vis conducive regulatory environment, added Mr. Jiwarajka.

Indian households are gradually putting their financial savings into shares and bonds, he said.

The improvement in performance of equity markets over the years is boosting confidence of investors on account of strong growth prospects of the Indian economy, said Mr. Jiwarajka.