Modi 3.0: Stock markets to touch new high in 1 yr, say global rating agencies

New Delhi: Indian stock markets have seen a robust rally since the new government’s formation, closing at an all-time high in the last week. According to top rating agencies, the indices are set to gain new highs in the next 12 months.

It was the second consecutive week when Indian frontline indices Sensex and Nifty made a new all-time high of 77,145 and 23,490 respectively, as inflation cooled off.

The stock market is attracting global funds which are going to accelerate soon.

Moreover, the stock markets have emerged as a favourite investment destination for retail investors.

According to global rating agency Moody’s, its “12-month forward BSE Sensex target is 82,000, implying 14 per cent upside”.

In its latest report, Moody’s said that the key benefit to the market of the NDA’s re-election is “policy predictability, which will influence how growth and equity return pan out in the coming five years”.

“We believe the government is likely to continue focusing on macro stability (i.e., inflation hawkishness) to inform policy,” according to the report.

“With government continuity now in place, we believe the market can look forward to further structural reforms, giving us more confidence in the earnings cycle. Macro stability with rising GDP growth relative to real rates should extend India’s outperformance over emerging markets equities,” it added.

According to Moody’s, India’s stock market has been making new highs, and the debate now is over what could take the market materially higher.

“In our view, the government’s mandate is likely to result in policy changes that will lengthen the earnings cycle and surprise the market,” it emphasised.

With Modi 3.0 in power, more will come over the next five years in the form of positive structural shifts.

Moreover, India has reclaimed the fourth-biggest global equity market tag from Hong Kong. The country’s market capitalisation soared 10 per cent to reach $5.2 trillion.

In comparison, Hong Kong’s equity market cap is $5.17 trillion, down 5.4 per cent from the high of $5.47 trillion this year.

At present, India is the second-largest emerging market after China.

Global investors now prioritise liquidity and can’t afford to ignore the Indian stock market, which is booming with retail investments, according to global analysts.

IANS

India’s defence exports record over 30-fold quantum leap in last 10 years

New Delhi: India’s defence exports have recorded a 30-fold quantum leap over the last 10 years from a mere Rs 686 crore in the financial year 2013-14 to a record...

Direct tax collections surge 19.5 pc to Rs 5.74 lakh crore in 2024-25 so far

New Delhi: The country’s nets direct tax collection posted a robust 19.5 per cent growth to Rs 5.74 lakh as on till July 11 of the current financial year (2024-25)...

Ola CEO calls for 70 hours work week, doctor warns of diseases, premature death risk

New Delhi: After Ola CEO Bhavish Aggarwal backed Infosys founder Narayana Murthy's 70-hour work-week advice, a top neurologist on Friday warned that it could increase the risk of several serious...

New jobs created in Indian economy in 2014-23 jump over 4-fold compared to 2004-14: SBI study

New Delhi: As many as 12.5 crore jobs have been created in the Indian economy during the financial years 2014-23, which represents an over four-fold jump from the 2.9 crore...

Top-notch Saudi-Indian company launches its new website in Saudi Arabia

RIYADH: After months of hard work and dedication, Big City Solutions Company for Business Services is pleased to announce its new website (www.bigcitysolution.com) with the primary goal of creating a...

Adani Group’s Vizhinjam Port receives first mothership, puts India in world league

Thiruvananthapuram: Adani Group's Vizhinjam Port, India's first trans-shipment port near Kovalam Beach in Kerala, received its first mothership on Thursday. 'San Fernando', a vessel of the world’s second-largest shipping company...

Shiprocket integrates Snowflake’s AI Data Cloud to empower 1.5 lakh Indian merchants

New Delhi: Data cloud company Snowflake, on Wednesday, announced that e-commerce enablement platform Shiprocket has successfully deployed its artificial intelligence (AI) Data Cloud, which will empower 1.5 lakh Indian merchants...

Sensex trades lower amid selling in banking stocks

Mumbai: Indian equity indices opened in red on Wednesday following pressure in banking stocks. At 9:55 a.m., Sensex was down 228 points or 0.28 per cent, at 80,123 and Nifty...

Number of new jobs more than doubles to 46.6 million in 2023-24: RBI data

New Delhi: As many as 46.6 million new jobs were created in the Indian economy during 2023-24, according to the latest data released by the Reserve Bank of India. The...

Xiaomi aims to source 55 pc phone components in India, showcases 1st luxury EV

Bengaluru: Smartphone company Xiaomi on Tuesday said it aims to source at least 55 per cent of its components locally in India, which aligns with the government's 'Make in India'...

EV adoption could save $10 bn, create millions of jobs by 2030: Amitabh Kant

New Delhi: Highlighting the need to create a new overarching strategy for road transport that can boost transition to Electric Vehicles (EV), G20 Sherpa and former NITI Aayog CEO, Amitabh...

India’s Financial Inclusion Index improves to 64.2 in 2023-24

Mumbai: India’s Financial Inclusion Index (FI-Index) for the financial year ended March 31, 2024, has improved to 64.2 vis-a-vis 60.1 in March 2023, with growth witnessed across all sub-indices, the...

Read Previous

Israel announces ‘tactical pause’ in Gaza military offensive

Read Next

How (not) to read market swings in election season

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com