 "Equity investors")
Investor mood has turned buoyant with the Nifty breaching 19,000 for the first time. However, the landmark took a long time to come. The benchmark index had topped 18,000 back on October 11, 2021. The latest 1,000-point up move for the 50-share index---a 5.3 per cent gain—has taken 425 days. In other words, someone who bought the index in October 2021 had to wait for over 20 months to recover the investment value. An analysis of every 1,000-point move, since when the Nifty first touched 9,000 in 2015, shows at 425 days this is the second-most number of days the index has taken for a 1,000-point climb. The highest was 592 days for the index to move from 9,000 to 10,000.
The previous two 1,000-point moves from 17,000 to 18,000 and 16,000 to 17,000 had taken just 28 days and 19 days respectively. The jury is still out on how soon the index will breach the magical 20,000-mark. With Nifty trading at rich valuations of nearly 21 times its estimated earnings for FY24 of Rs 915, there is little legroom more expansion. However, the market is known to overshoot and undershoot valuations. If the ongoing strong momentum in foreign flows continues, the wait for 20,000 may not be long, believe analysts.
The previous two 1,000-point moves from 17,000 to 18,000 and 16,000 to 17,000 had taken just 28 days and 19 days respectively. The jury is still out on how soon the index will breach the magical 20,000-mark. With Nifty trading at rich valuations of nearly 21 times its estimated earnings for FY24 of Rs 915, there is little legroom more expansion. However, the market is known to overshoot and undershoot valuations. If the ongoing strong momentum in foreign flows continues, the wait for 20,000 may not be long, believe analysts.
