The Nifty, a prominent index of the National Stock Exchange (NSE), is expected to start the new year on a strong note with a likely increase in stock prices and new investment opportunities. This is largely due to positive developments in the Indian economy and the gradual opening up of the lockdown restrictions across the states.
Several positive macroeconomic indicators, such as the Monetary Policy Review, higher IIP figures and a revival in consumer demand have provided a much-needed boost to the markets. These factors, along with strong inflows of foreign direct investment by some of the leading investors, have improved the sentiment in the markets.
Moreover, rising exports and healthy corporate earnings have further added to the optimism in the markets. As a result, Nifty is likely to see an overall positive performance in the first week of 2021.
However, market experts are of the view that any shift in the political scenario, particularly from the US and China, can have a drastic impact on the Nifty. With that being said, global cues and policy reforms will be the key determinants of the Indian stock market in the coming days.
In view of these developments, traders and investors are being advised to stay vigilant in their investments and weigh all options carefully before making any decisions. History has shown that taking a long-term approach in investments can yield better results than short-term speculation.
Given the current buzz surrounding the Nifty, investors can look forward to some strong returns in 2021. That said, it is important to keep an eye open for any policy changes or tension between nations as these can remain wildcards and affect the overall market trends.
