In the center Since the formation of the new government, Indian stock markets have seen a strong rise. Last week, the stock markets closed at their all-time high. According to top rating agencies, the index will reach new heights in the next 12 months. According to global rating agency Moody’s, the Sensex can reach 82,000 points in the next one year. That is, it can rise by 14 percent. On one hand, foreign funds are investing money in the stock market, while on the other hand, retail investors are also investing heavily.
There will be benefits from the formation of NDA government
Moody’s recently released report said the main benefit to the market from the NDA winning re-election is “policy predictability, which will impact growth and equity returns over the coming five years”. “We believe the market can expect further structural reforms, giving us greater confidence in the earnings cycle. Macro stability coupled with rising GDP growth relative to real rates will drive India’s outperformance over emerging market equities,” the report said.
Structural reforms will be seen
According to Moody’s, India’s stock market is scaling new heights, and the debate is now on what can take the market materially higher. It said, “In our view, the government’s mandate is likely to result in policy changes that will lengthen the earnings cycle and surprise the market.” With Modi 3.0 coming to power, the next five years will see more positive structural reforms.
The stock market again reached the fourth position
Moreover, India has taken back the tag of the fourth largest global equity market from Hong Kong. The country’s market capitalisation rose 10 per cent to $5.2 trillion. In comparison, the Hong Kong stock market’s market cap is $5.17 trillion, down 5.4 per cent from this year’s high of $5.47 trillion. Currently, India is the second largest emerging market after China. According to global analysts, global investors are now prioritising liquidity and cannot ignore the Indian stock market, which is growing rapidly with retail investments.
Input: IANS
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