Breaking the 16,000 points from 15,000 points seems impossible. But, then with constant efforts in curbing the pandemic, normalization in the country, and easing of lockdowns, you never really know what might happen six months down the line.
The year 2020 was quite an unpredictable year owing to the pandemic and how the stock market reacted to it. No doubt the market was doing strong at 13,000 points on NIFTY in march but then fell close to 9000 points which wiped out crores of rupees from investors. But then, looking at the recovery rates and how the market responded to the current situation in the country, there have been some drastic fluctuations altogether.
However, when we look at how the market has responded in 2021, then there were chances of NIFTY crossing the 15,000 marks, and it did. Well, it was apparent on May 18th and 19th, which rallied it towards 15,000+ points. However, breaking the 16,000 points would be skeptical given the current situation in the country. However, a couple of key deciding factors might propel NIFTY to break the 16,000 point mark.
Lockdowns have hit the country hard due to COVID-19. Now large companies under NIFTY are still functioning, but localized lockdowns are still impacting the growth. Therefore, overcoming this in this financial year might be skeptical, but you never know what might happen six months down the line.
The current situation in the country is quite problematic owing to the pandemic. No doubt its affecting companies and their normal functioning., yet the market is breaking the 15,000 point markup and projecting impressive numbers. The recovery has been great, and looking into the future, the curbing of the pandemic is the only route for companies to excel in projecting profits and growth.
Once the pandemic has been curbed with normalization into effect, even then, the market might take time to grow and adjust its growth pattern. Moreover, the market and companies involved have to be prepared for such a scenario and better respond to stabilize the market. Corrections in the market are evident but then having a constant growth line is essential to break the barrier of 16,000 points.
NIFTY comprises the strongest companies that have a large market cap and are strong in holding their value. However, breaking the 16,000 point markup would be no easy task. Nevertheless, consistent growth with normalization in the country and greater performance of the companies could result in the overall growth in NIFTY and in other sectors.
If there is normalisation in the country and the economy returns to how it was before, then there are higher chances of this happening.