Sensex to reach 1,60,000 by 2029; Motilal Oswal predicts a bullish outlook!

In a recent interview with CNBC-TV18, Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, expressed his bullish outlook for the Sensex, forecasting that it could soar to 1,60,000 points by 2029.

Despite the market's recent fluctuations, including a drop from 85,000 to 81,151, Sensex, has remarkable pattern of doubling approximately every five years.

Reflecting on past milestones, the Sensex crossed the 60,000 mark in September 2021 and hit a high of 80,392.64 during intra-day trade in recent months. This impressive climb saw the index rise by 10,000 points in a remarkably short period, driven by favorable conditions such as beneficial monsoons, declining US bond yields, and strong foreign portfolio investment (FPI) flows observed in June.

Agrawal stated, "With a 15% compound annual growth rate (CAGR), the market can double in the next five years. This is the happiest moment of my life." He further emphasized the importance of attracting a broader base of investors, suggesting that over half a billion people should participate in the capital markets to ensure inclusive growth.

In his vision for the future, Agrawal called for the appointment of a dedicated minister for capital markets to facilitate this growth, noting that such leadership could significantly enhance the appeal of the market to the general public. "We might become a $10 trillion market in four years," he remarked, underscoring the potential for capital markets to become a preferred investment avenue over traditional options like real estate and gold.

He also compared the current market boom to the historic surge of 1992, pointing out that the presence of the Securities and Exchange Board of India (SEBI) today provides a crucial regulatory framework that enhances investor confidence, which was lacking during the earlier boom.

As investors keep a close eye on market trends, Agrawal’s optimistic outlook could inspire many to consider the stock market as a viable investment strategy for the future.