Nifty 50 at 18-month low: Amid crude oil price volatility, rising US bond yields, weakness in the Indian Rupee, RBI’s monetary tightening, and buzz for the US Fed rate hike, the Indian stock market witnessed strong selling pressure on Thursday, wiping out around ₹11 lakh crore from the market. In this sell-off, the BSE Sensex finished at a 32-month low of 71,593, whereas the Nifty 50 index ended at an 18-month low of 22,231.
According to stock market experts, the Indian stock market is in an oversold zone, and it can make its bottom soon. However, they also maintained that the Nifty 50 index would once slip below the 22,000 support before the Indian stock market makes its bottom. Experts predicted a strong rebound once the bottom is reached and advised investors to tweak their investment strategies to create wealth. They said that large-cap stocks will lead the rebound, followed by the mid-cap stocks. However, they are betting on large-cap ETFs rather than large-cap stocks.
Is the Indian stock market at its bottom?
Expecting the Indian stock market bottom in one to one and a half months, Amit Goel, Chief Global Strategist at PACE 360, said, “Most of the Indian indices are in the oversold zone and a good number of large-cap and mid-cap stocks are available at an attractive valuation. However, the market bottom is being delayed by global triggers. After the Houthis’ problem with the alternate route to the Strait of Hormuz for crude supply from Middle Eastern countries like Saudi Arabia, crude oil prices have remained elevated. Soaring US bond yields and a strong US dollar are adding salt to this wound. However, these three triggers may not last for more than a month. I expect it to ease by the US Midterm Elections, scheduled for 3rd November 2026. However, before the market bottom, the Nifty 50 index would once break below 22,000.”
Pointing towards the RBI’s monetary tightening, Anuj Gupta, a SEBI-registered market expert, said, “The monetary tightening had happened during the COVID-19 challenge also. However, this time we do not expect it to go deep. I believe there will be one more rate hike in the current financial year under normal circumstances, whereas, in the event of any adverse global trigger, there could be one more rate hike in FY27.”
What next, if the market bottom is made?
Amit Goel of PACE 360 said the market bottom could come at any time in the first fortnight of November, with large-cap stocks leading the charge. However, he suggested a different approach for equity investors interested in wealth creation.
“I am expecting the Nifty 50 index to touch 25,500 by the end of FY27 in normal conditions, whereas in the bull case, the key benchmark index may touch 27,000 by the end of FY27. So, it is better to look at large-cap ETFs instead of large-cap stocks. I would suggest investors buy the Nifty 50 ETF and the Nifty 100 ETF by the end of October or by the beginning of November 2026. The Nifty 50 index would deliver at least 15% return in the next five to six months, whereas the Nifty 100 ETF is expected to deliver 18% in this time, because the Nifty 100 index has a history of outperforming the Nifty 50 ETF by 2.50% to 3% in a particular time frame, when the market is in a bull trend,” said Amit Goel.
Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
