Market volatility is at its peak despite brokers’ confidence in the Modi government’s victory

With an expected earnings growth of 15%, the brokerage expects Nifty to touch 24,500 by December 2024. Nifty is expected to further increase upward mobility to cross 26,500 by December 2025, EIM added.

Manish Sonthalia, chief investment officer at EIM, said, “BFSI, PSUs and industrials are expected to perform well. BFSI led earnings growth and saw valuation correction. Investment topics will come into play as energy capital expenditures increase over the next 3 to 5 years.

The benchmark Sensex ended Tuesday’s session at 75,171, down 220 points, while the Nifty50 index ended the session at 22,888, down 44 points. Apart from the elections, Indian markets are choppy due to continuous selling by foreign portfolio investors (FPIs).

Most brokerages also believe that a victory for the opposition INDIA Alliance could lead to a sharp correction as the focus on populist politics will not be able to justify the high valuation of local stocks.