Nifty 50 poised to reach 25,000 by May, says Nirmal Bang's Rahul Arora

The Nifty 50 experienced a bumpy start to the year 2024, facing challenges such as market volatility and weak global cues that prevented it from reaching the desirable 22,000 mark.

In an interview with CNBC-TV18, Rahul Arora, CEO of Nirmal Bang Equities, expressed optimism about the market's strength, predicting a robust period until May. He speculated that the current rally might continue, pushing the index to the range of 24,000-25,000 by May.

“It is going to be a strong period of the market till May. I will not be surprised if this rally continues till 24,000-25,000 by May,” he said.

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Arora highlighted the prevailing theme of rate cuts. The US Federal Reserve has already indicated three quarters, and there are signs that the Reserve Bank of India (RBI) may follow suit, potentially implementing at least a 50 basis points cut.

Addressing specific stocks, Arora commented on HDFC Bank's exceptional performance in the third quarter of the fiscal year 2024. He emphasised that HDFC Life's valuations have also moderated, advocating for continued investment in HDFC Bank. Arora suggested that there is no apparent reason for retail investors to refrain from buying HDFC Bank shares.

Also Read | HDFC Bank Q3 business update: Gross advances grow 62.4%, retail loans 111% up

Discussing the consumer goods sector, he cautioned that fast-moving consumer goods (FMCG) companies might struggle to achieve a 10% growth in topline. Arora expressed reservations about purchasing stocks like HUL and Dabur at their current valuations. However, he maintained a positive stance on the consumer discretionary space.

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