Sensex likely to touch 50k-mark by March-end

As of date, Sensex is trading over 48,000-level and is just 3.7% shy from the historic mark of 50,000.

The 30-share benchmark BSE Sensex is likely to breach the historic 50,000-mark by the end of March 2021 on the back of healthy quarterly earnings and continued foreign fund inflow.

According to five different analysts that DH spoke to, the stock markets are likely to witness the rally in the next three months. This is in sharp contrast to what analysts were expecting a month ago: a substantial correction in the month of February.

"We expect Nifty-50 to go anywhere between 14,500 and 15,000 in the first quarter of this calendar year. This means BSE Sensex should also touch the 50,000 mark somewhere in the first quarter," said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.

As of date, Sensex is trading over 48,000-level and is just 3.7% shy from the historic mark.

Analysts say that multiple reasons would lead to continued rally in the stocks, primary being the foreign fund inflow.

"We think it is quite likely to happen in 2021. Ample global liquidity, consumption stimuli in developed markets, rising supply of vaccines, improving demand and strong FII equity flows. These are all leading to a bull market rally," said Abhimanyu Sofat, Head of Research, IIFL Securities Ltd.

Foreign funds have been buying heavily in the Indian equity markets, due to the lack of quality play at reasonable valuations in the developed economies.

Foreign funds bought a net of Rs 65,317.13 crore in the Indian equity markets in November 2020, followed by Rs 48,223.94 crore in the month of December.

"We believe Q3FY21 corporate earnings and Union Budget will be quite crucial for the market and any positive surprise may lead markets to record new highs," said Binod Modi, Head Strategy at Reliance Securities.

The analysts expect a very good Q3 earnings season due to the sharp jump in advance tax figures.