The Indian market has reached new highs on Friday, while S & P BSE Sensex peaked at 31k, while Nifty50 climbed 9,600 items with ease. S & P BSE Sensex increased by more than 16 percent through 2017, while Nifty50 increased just over 17 percent over the same period.
The next question that everyone wants to ask – who will continue the rally? Well, the latest estimates by analysts as the technical indicators suggest a massive manifestation of benchmark indices that can take the S & P BSE Sensex to 100,000 and Nifty50 to 22,000 to 38,000 in the next 5 to 7 years.
Most technical analysts do not prevent the issuance of large quantities because the momentum turned out to be false. The correction that everyone wanted never came as the Indian market rose to a new level with renewed optimism.
The trip to Mount 100,000 for Sensex and 22K-38K for Nifty50 based on certain assumptions and high goals should always be taken with a pinch of salt.
“We work with a target of 20 000 22 000 in Nifty by 2022-2024. Government policy and reforms initiated by the Modi government normally takes 5-6 years to produce results, so we are in this process and with the introduction of The GST, the Indian Government’s focus on make-up, Easy business, Bank cleaning assets, make India Digitial, financial inclusion, cashless economy for those who demonization has launched all open The road, “said AKPrabhakar, Head-Research in IDBI capital Moneycontrol.
“Over the past 4 years, profits have exceeded 400 in Nifty EPS and increased industrial product portfolio. India would be a saving: $ 4 billion in 2024 and, by 2021, our skilful EP could be around 810 in the Next stage of growth and if the euphoria takes to the streets, the evaluation can go nowhere, “he said.
Although the goal seems very strong, but it is not impossible. If we remember the PESS S & P Sensex moved from 2,594 in 2001 to 21,208 in 2008, in January, after which, in the last 9 years, Sensex has consolidated, while the best part of the 2003 event is less than 2904, or 7 times in 5 years.
For Sensex, the rally has just begun. From the perspective of the Elliott wave, ahead of 1979 the Sensex is a very advanced cycle and we are now in the happiness of this breakthrough, Mark Galasiewski, said the wave of Elliott International in a chain of business news, ETNow.
“I gave a Sensex 100,000 five-year forecast by the year 2024 and I see no reason to change that, or to update the forecast for the current form of the advance is a technical point of view confirmed from April Sensex and Nifty 2009. Tripled since then, and can more than triple in the next few years, “he said.
The next stage of the rally will be driven by the history of earnings growth in India remained silent for the last 4-4 quarters. With economy in repair, the target is not attainable, but it will take a lot to move in a similar direction.
With the implementation of the tax on goods and services tax (GST), most analysts take into account the growth of higher profits for variable capital companies that can benefit more from the tax norm of a nation.
“The passage through Mark’s statement, the move from 30,000 to 1,00,000 in Sensex could last seven years (2017-2024). Numerically, this means an average annual return of almost 18 percent for the next seven years to reach Target of 1.00,000, “said Gaurav Dua, head of research, Sharekhan to Moneycontrol.
“This does not seem affordable considering that the Sensex has given combined annual returns of nearly 16.5 percent in the past 39 years – from 100 in 1978 to 30,500 now (2017),” a-t said.
Dua said that with this period of nearly four decades, there was a yield period of more than 20 percent for the period of several years in an economic cycle in India. It could be the same this time too.