Robust Income Growth and Domestic Capital Influx to Propel Sensex Beyond 1 Lakh Milestone
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Mumbai, Dec 7 (NationPress) The Indian stock market, acclaimed as the leading performer in the emerging markets (EMs), surpassed the 85,000 mark for the first time in September this year.
Now, the multinational investment bank and financial services firm Morgan Stanley has projected that the BSE Sensex could breach the historic 1 lakh level in this optimistic scenario by the end of next year.
The global brokerage firm anticipates that the Sensex could reach as high as 1,05,000 bolstered by robust income growth, domestic capital inflows, and macroeconomic stability.
When the Sensex initially crossed 85,000, economists in the country had also made similar forecasts.
On September 24 this year, the Sensex reached 85,044 (record high) for the first time. On the same day, the Nifty index rose by 30 points to 25,969. This index, consisting of 50 shares, also hit a record of 25,975.
"The 1 lakh mark will soon be achieved, whether this year or early next year. Although it requires a steep ascent, India is undoubtedly experiencing a bull run in the stock market," stated Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, to IANS.
Conversely, foreign institutional investors (FIIs) are adjusting their strategies and adopting a buying approach. Market analysts noted on Saturday that the Indian economy remains robust despite geopolitical challenges, which has brought an end to the prolonged selling trend of FIIs.
According to Siddhartha Khemka of Motilal Oswal Financial Services Ltd, FIIs have kicked off December on a favorable note, significantly uplifting market sentiment.
Thanks to the ongoing surge in the Indian stock market, the market capitalization of the Bombay Stock Exchange (BSE) has also seen remarkable growth, surpassing Rs 450 lakh crore once again.
In the last three trading sessions, both the Sensex and Nifty have yielded returns exceeding 4 percent. During this period, the BSE's market cap has increased by more than Rs 10 lakh crore.
Currently, the total market cap of all companies listed on the BSE exceeds Rs 454 lakh crore.
