It seems stock markets will remain on a high in the coming years with experts betting big on India’s growth story. After JP Morgan’s Adrian Mowat, Edelweiss Securities’ President and CEO Vikas Khemani has said that Sensex could touch 75,000 in next 5 years as domestic factors look favourable. He told ET Now that the stock markets will be in a structural bull cycle for next 3-5 years. “We will see well-balanced growth in India,” he added.
Last week, JP Morgan Chase & Co Adrian Mowat’s in an interview to CNBC TV18 had said that Nifty could touch 10,000 by December-end, adding a strong performance by the emerging markets over next few months with. He had said that India’s higher growth rate is a big advantage for the country as it remains a popular overweight amongst emerging markets.
On a year-to-date basis, the BSE Sensex has risen 9.31 per cent to 28599.03 till September 16. NSE Nifty 50 index rallied 10.26 per cent to 8779.85 during the same period.
Khemani also said rural economy is seeing income-led growth as against wealth-led growth with the rural consumption taking around 1-1.5 years to pick up.
Asian Paints, HDFC Bank, ITC are among the strong bets, according to Khemani, who feels global monetary policy tools have exhausted and fiscal policy will play an important role.
Khemani is also bullish on the insurance sector and said that premiums can grow at 18-20 per cent for next 8-10 years. He expects 4-5 companies in insurance sector to give significant returns. From the insurance sector, ICICI Prudential Life Insurance’s around Rs 6,000 cr IPO hit the markets on Monday.