The Nifty has gained roughly 15-16 percent in the last two years, which is not a lot for the index, he remarked in an interview with CNBCTV18. – Atul Suri
According to Atul Suri of Marathon Trends, the Indian stock market is not in bubble territory, and the NSE Nifty 50 has the ability to increase another 9-10 percent from here. The Nifty has gained roughly 15-16 percent in the last two years, which is not a lot for the index, he remarked in an interview with CNBCTV18.
“When we look at data as a more continuous flow rather than a start point and an endpoint, you realize that in ratios, we are nowhere near where we were in 2008 and 2018,” Suri added, attempting to alleviate concerns about the formation of a bubble. While the Nifty was up 4-5 percent in 2022, the small-cap index was down 14-15 percent, he reasoned. The small-cap index is making up for a period of underperformance this year, in 2023.
Suri claims that ratio charts comparing large-cap and small-cap indexes show that the markets are nowhere near ecstatic.
Similarly, banking stocks, which have underperformed the Nifty 50 so far this year, are on a breather after a stellar run in the previous year, Atul Suri said. “Banks last year outperformed Nifty by a huge number. The fact is, banks are to some extent resting, and they will do a catch-up because the numbers coming out of the banking sector are very good,” Suri said. “Banks (stocks) had already run up in anticipation of these numbers.”
Since March 31, the NSE Bank Nifty index has increased 12.07 percent.
He also stated that NBFC firms have been performing well. “If there was an NBFC index, it would have outperformed the majority of banks.”
