'Nifty may touch 12,000 before elections if there is no major negative news'

I am bullish on Indian equities on a long term horizon, says Pradeep Gupta, Co-founder and Vice Chairman, Anand Rathi.

I am bullish on Indian equities on a long term horizon. Nifty is already at 11,750 levels and if no major negative news hits market, there is some amount of possibility that it may touch 12,000 before elections, Pradeep Gupta, Co-Founder & Vice Chairman, Anand Rathi said in an interview to Sunil Shankar Matkar.

Q: Rising crude oil prices dampened market sentiment a bit recently. Will it touch $80 a barrel and is it a real threat to India as well as equity?

A: I would like to desist from estimating the crude oil prices. At the moment, oil price are going up due to withdrawal of exemption on Iranian oil exports by the US. Medium to long term impact on this issue will depend on how US, Russia and OPEC reacts to this move.

My guess is that this situation is not going to go for a long period of time. If that so, then I believe that implications are not going to very adversely impact Indian capital market scenario on a long term basis. However, if the situation goes for a longer time and increase in oil prices stay for prolong period then it will surely impact the Indian capital markets negatively.

Q: Most analysts saying the Nifty is expected to surpass 12,000 and Sensex 40,000 levels before elections. Do you agree and if yes, then what factors would support that rally?

A: I am bullish on Indian equities on a long term horizon. In the recent times, there are developments on a world economic front (e.g. Chinese manufacturing PMI over 50, positive credit growth in China, strong labour market in US) suggest that growth in second-half of 2019 would be stronger than anticipated. Similarly, inflation is benign, neutral monetary policy, liquidity is comfortable and fiscal policy is accommodative across the world.

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