Equity Market: BNP Paribas has maintained an overweight rating on the Indian stock market for the year 2021. French International Banking Group BNP Paribas believes that the S&P BSE Sensex will be able to touch 50,500 in 2021. In this context, the market may rise by 9.5 percent from the current level. Apart from the Indian stock market, BNP Paribas is also bullish on China, Indonesia and Korean market. Before that, Morgan and Stanley have also predicted to touch the Sensex figure of 50 thousand in the year 2021.
Due to these reasons, you are getting benefit
This international bank said that the market of India and China is benefiting due to some reasons. Both countries focus on strengthening the economy for the long term. Apart from this, strong measures are being taken to increase demand in both the countries. Apart from this, emphasis is also on investment measures. Another difference to the Indian market is that there is more availability of quality stocks here. BNP Paribas said in its Asia Strategy Report for 2021 that India has higher weightage among Asian countries for the availability of high-quality market leaders. Right now the S&P BSE Sensex is trading at 46,253 which can cross the 50500 level in 2021.
Which shares expressed confidence
BNP Paribas has added ONGC and Marico to the portfolio for the year 2021, while reducing Britannia. According to the report, after the projected decline of 11.4 per cent in the year 2020, there may be 11.6 per cent growth in GDP in the year 2021. At the same time, in 2022 it can grow at the rate of 5 percent. At the same time, consumer price inflation (CPI) can be 4.3 percent in 2021 and 3.8 percent in 2022.
Indicators strong for economy
BNP Paribas said that India is still recovering from the corono virus epidemic. Auto sales, steel and cement consumption and railway freight traffic are approaching pre-copied levels or beyond. They are strong indicators for the economy.
According to BNP Paribas, India’s recent policy measures have also benefited the market. The measures that have been taken in the last few years on the economy have helped frontline companies to increase their market share in most sectors. The equity market has also got a boost due to this. Private banks and insurance companies are benefiting from market share gains. At the same time, consumer stocks are benefiting from domestic rural demand. Global deal is improving. These are all good signs.
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The risk
If we talk about risk then there is a decline in urban income. Inflation remains high. There has been a decrease in employment due to COVID 19. Many people have lost their jobs. There has been a decrease in consumption of non-essential commodities in cities, even though the results are not surprising, but still worrying.
Source: www.financialexpress.com