By the end of the year, the Indian stock market will have surpassed February’s record high, according to a poll.

Image-of-Indian-Stock-Exchange.

According to a Reuters survey of analysts, India’s main stock index will surpass the record high it reached before the latest coronavirus outbreak took hold by the end of the year.

According to a Reuters poll of more than 30 stock analysts conducted from May 11 to 26, the Sensex index would rise another 5% to a new high of 53,200 by the end of 2021, but not much higher than February’s top and significantly below expectations three months ago.

The benchmark S&P BSE Sensex climbed little in March after reaching a new high of 52,516.76 in February, before declining approximately 1.5 percent in April. However, COVID-19 daily case loads have begun to decline, and the index is now up roughly 6% for the year, with more than half of those increases coming in the last few weeks.

According to a Reuters poll of more than 30 stock analysts conducted from May 11 to 26, the Sensex index would rise another 5% to a new high of 53,200 by the end of 2021, but not much higher than February’s top and significantly below expectations three months ago.

The Indian stock market was expected to grow about 8% to 54,500 by mid-2022, from Tuesday’s close of 50,637.53. It was then predicted to end 2022 at 58,500.

“The equities market always looks at what the fundamentals might be three to six months down the road, when corporate earnings, economic activity, and growth should come up,” said CA Rudramurthy, managing director of Vachana Investments.

“However, trading this year will be more selective than it was in 2020, when it was more speculative and you could purchase any stock and prices just kept increasing – that part is over.”

When questioned about the dangers to the Indian stock market outlook posed by the ongoing coronavirus epidemic, 66 percent of analysts (21 of 32) indicated they were minimal. The remaining 11 people believed the danger was very high.

“All of the terrible news from the COVID-19 second wave has already been factored into market prices. Even if the third wave arrives as predicted, it will not be a new situation. The past waves’ uncertainty – which the markets despise – will no longer exist “Rudramurthy from Vachana offered his two cents.

“Markets are pricing in a very strong growth momentum, based on the high valuations of Indian equities. However, growth prospects are fading…and in that scenario, we don’t see much upside from here “Societe Generale’s Asia stock strategist, Rajat Agarwal, stated.