Thu Sep 12 08:22:00 UTC 2024: ## Indian Markets See Slight Dip in September Amidst Global Concerns, But Experts Remain Bullish for 2024
**Mumbai, India** – Despite a strong performance in the first half of 2024, the Indian stock market experienced a slight downturn in September, shedding nearly a percent over the first eleven days. This decline is attributed to a confluence of factors including geopolitical tensions, concerns surrounding interest rate cuts, elevated valuations, and negative global cues.
While the benchmark Nifty index has fallen 0.93% in September, it still boasts a remarkable 15% rise year-to-date. Experts, however, remain optimistic about the overall market outlook for 2024, citing strong fundamentals, favorable macroeconomic conditions, and a positive investor sentiment.
Vishal Bajaj, Director of Wealth at Client Associates, highlights the role of robust liquidity, strong economic indicators, and a favorable macroeconomic environment in sustaining market buoyancy. He cautions about potential overvaluation, particularly in the large-cap segment, while emphasizing the medium-to-long term potential of the large-cap sector due to its relative stability.
Echoing Bajaj’s optimism, Nishit Master, Portfolio Manager at Axis Securities PMS, expects mid-single-digit returns from the Nifty in 2024 with no significant corrections in the near term.
However, Apurva Sheth, Head of Market Perspectives and Research at SAMCO Securities, highlights two potential game-changers for the global financial market in 2024: the Federal Reserve’s stance on interest rates and the U.S. Presidential elections. Sheth expects heightened volatility in the final quarter of the year due to these events.
While acknowledging the recent decline, Deepak Jasani, Head of Retail Research at HDFC Securities, predicts intermittent corrections despite the overall positive market trend. He expects a possible correction in the latter half of September.
Prabhudas Lilladher, a brokerage house, observes a weak candle pattern in the Nifty index, indicating potential for profit booking. They identify a critical support level at 24,800, essential for maintaining the bullish bias. Conversely, breaching the 25,150 level would signal a continuation of the positive trend.
Sameet Chavan, Head of Research, Technical and Derivative at Angel One, notes a pattern of sluggish upward movements and pronounced declines, prompting a cautious stance against aggressive bets. He advises against aggressive long positions unless a clear bullish reversal emerges.
While acknowledging the potential for short-term corrections, experts largely maintain a positive outlook for the Indian stock market in 2024. Investors are urged to monitor market fundamentals, global events, and the Federal Reserve’s decisions, which could introduce volatility in the medium to long term.
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