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The Indian indices are expected to extend their record-setting rally on December 7th, 2023, with the Nifty 50 index inching closer to the 21,000 milestone. As per market analysts, the banking sector’s recent outperformance will remain pivotal for the Nifty 50 to scale fresh peaks beyond the 21,000 mark.
Over the last few weeks, top lenders like HDFC Bank, ICICI Bank and Axis Bank have seen their stock prices surge, aiding the benchmark index’s climb to all-time highs. If the banking rally persists, experts believe the Nifty 50 has room for further upside in the near term.
The upbeat domestic macros have also catalyzed the ongoing bull run, with the strong Q2 GDP growth figures, cooling inflation and the RBI’s accommodative policy stance driving positive sentiment. Moreover, the dip in US Treasury yields has drew foreign fund inflows into emerging markets like India.
Further aiding sentiment is the government’s stake sale in railway PSU IRCON via an offer for sale (OFS) route on December 7th, which is expected to boost divestment proceeds. With the floor price set at ₹154 per share, the OFS will see the government sell 8% equity in IRCON.