Equities on a high! Sensex on track to hit 75K in next 5 years


The S&P BSE Sensex has more than doubled in the past 10 years, and almost tripled in the past eight, but the rally is not over yet! Some analysts are pencilling in a target of 75,000 for the index in the next 5 years.

The S&P BSE Sensex rallied from 13,786 in 2006 to 28,599 in 2016 so far. It almost tripled from the 2008 level of 9,647 (see chart).

“We are in for a stock-sell bull market over next three to five years, led by some of the structural basic things which are happening in our country. We have a Sensex target of 75,000 for the next five years,” Vikas Khemani, President & CEO, Edelweiss Securities said in an interview with ETNow.

“We are factoring in 20 per cent CAGR growth, and it should be 2.5x in the next five years. Right now, we are around 30,000 so it should be around 2.5x. My expected CAGR growth is around ..

Most experts feel that earnings have bottomed out and should see a double-digit growth in FY17. “We continue to believe that the improving economic growth aided by sustained policy reforms, above normal monsoon and benign interest rates, can result in earnings upgrade cycle improving further from here on,” ICICI Securities said in a note.

Their one-year forward Nifty50 target is about 9,600, based on rolling forward Nifty earnings, to take into account FY19 EPS and applying an above ..-average returns over the medium to long term.

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