Market Sentimeter: Most market participants see equity market rising over 10% in next one year

Equity markets have seen a breathtaking one-way rally since April 2020 with the Nifty surging over a 120 percent since its pandemic lows. But what will returns look like going ahead, and which are the most promising sectors to invest in over the next one year?

CNBC-TV18 polled about 40 market participants, including fund managers, smart HNIs and institutional sales heads, on what to expect from Indian equities in the next one year.

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Despite a 55 percent rally since last Diwali, an overwhelming six out of 10 participants still expect equities to do well and expect a 10 percent rally from current levels. That suggests that the participants are eyeing 20,000 on the Nifty by next Diwali.

On the flip side, only 8 percent of the respondents are expecting more than 10 percent downside from the current levels.

Majority of the respondents are expecting financials to do well, with banks expected to be the big gainers in the next one year followed by capital goods and real estate.

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Even in technology, which has seen a big upmove in 2021, bulls are continuing to fight and expect technology to do well in 2022 as well.

While the mid-caps and small-caps have been the darling sectors in the last one year, from hereon participants expect large-caps to outperform in the next year.

Almost six out of 10 participants expect large-caps to outperform mid-caps and small-caps.