Sensex @ 40,000
The S&P BSE Sensex which was trading around 19,426 at the close of 2012 rose to 29,706 in the year 2016. It took nearly five years for the index to rally about 10,000 points in the past. However the Sensex may cross 40,000 in next one to two year this time. Thus soaring this 10,000 in two years only.
The domestic liquidity has added the much need optimism in the market which could support the market even at times when foreign institutional investors (FIIs) decide to cash out.
Since the time Narendra Modi came to power, investor inflows into Indian equity markets have been over Rs 2 lakh crore. In the last 3- year's flows have doubled to the flows seen in last one decade before May 2014.
For the journey of Sensex to 40,000 mark the first leg of the market cycle will be driven by consumption, and then 12-18 months from now, the infrastructure segment will come to support.
Sharp surge in DII flows into equity market shows the confidence of an Indian investor towards the economic growth of the ruling government.
FIIs also Overweight on India
The optimism about India has grown louder in the recent past not just domestically but globally as well. India is back in the game to command overweight status among top foreign institutional investors (FIIs).
Global investors cheered BJP strong show in the just-concluded state elections where the ruling government managed to attain a majority in most states, especially in Uttar Pradesh.
The demonetisation impact on the economy was also minimal compared what analyst's factored into their base calculation. FIIs which remained net sellers in the October-December quarter poured in Rs 30,906 crore in March to set a record for the highest monthly inflows in the history of India?s capital markets
The S&P BSE Sensex took five years to climb 10,000 points, but the next 10,000 points which could take the index towards 40K could well come in the next two years only.
The S&P BSE Sensex which was trading around 19,426 at the close of 2012 rose to 29,706 in the year 2016. It took nearly five years for the index to rally about 10,000 points in the past. However the Sensex may cross 40,000 in next one to two year this time. Thus soaring this 10,000 in two years only.
The domestic liquidity has added the much need optimism in the market which could support the market even at times when foreign institutional investors (FIIs) decide to cash out.
Since the time Narendra Modi came to power, investor inflows into Indian equity markets have been over Rs 2 lakh crore. In the last 3- year's flows have doubled to the flows seen in last one decade before May 2014.
For the journey of Sensex to 40,000 mark the first leg of the market cycle will be driven by consumption, and then 12-18 months from now, the infrastructure segment will come to support.
Sharp surge in DII flows into equity market shows the confidence of an Indian investor towards the economic growth of the ruling government.
FIIs also Overweight on India
The optimism about India has grown louder in the recent past not just domestically but globally as well. India is back in the game to command overweight status among top foreign institutional investors (FIIs).
Global investors cheered BJP strong show in the just-concluded state elections where the ruling government managed to attain a majority in most states, especially in Uttar Pradesh.
The demonetisation impact on the economy was also minimal compared what analyst's factored into their base calculation. FIIs which remained net sellers in the October-December quarter poured in Rs 30,906 crore in March to set a record for the highest monthly inflows in the history of India?s capital markets
The S&P BSE Sensex took five years to climb 10,000 points, but the next 10,000 points which could take the index towards 40K could well come in the next two years only.
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