‘Indian stocks to rise another 7pc this year’

BENGALURU, May 28 (Reuters): India's benchmark Nifty 50 stock index will rise a further 7 per cent over the rest of this year, irrespective of the outcome of the country's ongoing national elections, the chief investment officer of Emkay Investment Managers said on Tuesday.
The index has risen 5.3 per cent to around 22,900 points so far this year and Emkay expects the index to finish the year at roughly 24,500, said Manish Sonthalia.
That is slightly higher than equity analysts' 2024-end target of 23,850 points, according to a Reuters poll conducted earlier this month, as retail investors plough money into one of the world's most expensive stock markets.
The past couple of weeks, however, have seen a surge in trading volatility on doubts over the outcome of India's six-week-long national elections that ends next week.
Opinion polls ahead of the elections had predicted the ruling Bharatiya Janata Party and its allies could win three-fourths of parliament's 543 seats but expectations have since moderated.
Emkay's base case is for the BJP and its allies to win 320 seats, give or take 20. A stronger victory could lead to a "euphoric" reaction but investors should not cash out, Sonthalia cautioned.
If the BJP win fewer than 280 seats, it will be a negative surprise for the markets, he said.