On Wednesday, the news that the SENSEX 30 Index in India hit an all-time high and broke through the 80,000-point mark for the first time during the trading day was reported by global financial media. On Thursday, the Indian stock market continued to rise, indicating that the carnival is not over yet.

Market observers expect that under the stimulation of increased Indian government spending and sustained growth in corporate profits, the Indian stock market is expected to continue to rise, and the full-year increase is expected to reach 20%.

Indian shares are expected to reach new highs.

With the Indian election settling down, several strategists and investors surveyed by the media stated that the budget plan that the Indian government is about to launch may stimulate consumer spending and infrastructure construction in India, which is a good sign for Indian companies.

Since the beginning of the year, the benchmark NSE Nifty 50 index in India has accumulated a 12% increase to more than 24,000 points, setting a new historical high. Among the 24 respondents, more than half estimate that the NSE Nifty 50 index in India may rise to 26,000 points by the end of 2024, which means there is an increase of over 8%.

The trend of the NSE Nifty 50 index since the beginning of the year.

In the recent Indian general election, although Indian Prime Minister Modi's ruling party, the BJP, still has a majority, the reduction in the number of parliamentary seats has prompted investors to increase their bets on the Indian consumer sector, as they expect the Indian government to turn to more populist measures to boost its own support rate.

At the same time, the early arrival of the monsoon this year has also boosted the prospects of companies engaged in crop production such as rice, corn, and soybeans.

Bino Pathiparampil, research director of India's Elara Capital, said: "Driven by the improvement of profit margins, the profitability of Indian companies in the past year has been strong, and growth in the 2025 fiscal year may be higher than the trend level, which will help maintain India's mid-term growth story."

Consumer and financial conglomerates are expected to benefit the most.

Among the surveyed companies, 13 expected that the profit growth of Indian Nifty constituent stocks would remain strong, but another 5 stated that the market's optimism about future profits was somewhat excessive.

Integrated data shows that analysts estimate that the earnings per share of the MSCI India Index constituent companies will increase by 15.6% year-on-year in 2024.

Investors are now turning their attention to the government budget plan that will be announced this month. The budget will outline Modi's policy priorities in the new coalition government. Half of the respondents expect the government's primary task is to take various incentive measures to support consumption, and continue to promote capital expenditures in infrastructure.

Under this expected prospect, non-essential consumer shares in the Indian stock market are expected to benefit the most, followed by financial and commodity stocks.

Mahesh Nandurkar, a strategist at Jefferies Financial Group, wrote in a report on June 24th: "The Indian government can please everyone with higher capital expenditures, social spending and tighter finances."

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