Moody's claim: Sensex expected to cross 82000; market may get 14 percent return in a year
Moody's claim: According to Moody's report, the Indian stock market is constantly making new heights. Now it remains to be seen how the market can be taken up physically. There is a possibility of policy changes in the new government.
Rating agency Moody's claims that investors can get up to 14 percent return in a year from the Indian stock market. The Bombay Stock Exchange's Sensex can cross 82,000 during this period. This will be India's longest and strongest bull market to date. The Sensex is currently close to 77,000.
According to Moody's report, the Indian stock market is constantly making new heights. Now it remains to be seen how the market can be taken up physically. There is a possibility of policy changes in the new government. This can surprise the market. This decade will be India's decade in the third term of Prime Minister Narendra Modi.
The report said that with the BJP-led National Democratic Alliance (NDA) coming back to power, the market expects that policy decisions will remain intact. These decisions will affect growth and equity returns in the coming five years. We believe that the government may continue to focus on macro stability to maintain policy.
According to the analysis, the market can expect structural reforms as long as the administration remains in power. Macroeconomic stability, combined with increased GDP growth, should propel India's performance above that of other emerging economies. Moody's had already reduced India's GDP growth prediction for 2024-25 to 6.8 percent.
Policy reforms, an emphasis on lowering inflation, the GST law, the bankruptcy code, RERA, lower corporate tax rates, as well as many social reforms and infrastructure, have all been significant decisions throughout the last decade. With Modi 3.0 in power, there could be more beneficial structural improvements over the next five years.
