Brokerages feel small investors, MFs have replaced FPIs as market drivers

About 80% participants in a poll are of the view that retail investors or mutual funds have replaced Foreign Portfolio Investors (FPIs) as the main drivers of the domestic stock market.

In the Business Standard poll of domestic brokerages, half of the participants expected the Sensex and the Nifty to surge 10-15% in the next one year. Another 14% said the gains could be in excess of 15%, according to the newspaper.

The Business Standard report on the poll noted that a 15% rally from current levels will take the Sensex close to 70,000 and the NSE Nifty may cross 20,500. It further said that Axis Securities had a December 2022 Nifty target of 20,200 by valuing the Nifty at 22 times its FY24 earnings. Angel One has a Nifty target of 20,000, while IIFL sees it in the range of 20,000 and 21,000 in the next one year.

Brokers skeptic about primary market

Participants included Anand Rathi, Angel One, Axis Securities, Bonanza Portfolio, Edelweiss, Equinomics, Geojit Financial, IIFL, Motilal Oswal, Reliance Securities, Religare, Trustline, Ventura

A majority of them believed equities would be the best asset class for the next one year, while a minority of them felt real estate, gold or cryptocurrencies could be more attractive.

Many brokerages are, however, skeptical about the primary market even as they are bullish on the secondary market. Half of them saw red flags in the IPO market. A fifth of them said they could see bubble territory when it comes to initial offers.

The pandemic or rising oil prices are no more lingering on the minds of market participants. Earnings disappointment or policy normalisation could spoil the market party, most brokerages felt.

As much as 64% of participants said the markets would remain steady over the next one year with bouts of correction in between.