Strong income growth, domestic inflows; FIIs adopts buyer's stance Sensex aims beyond 100,000 mark

The Indian stock market, a leading performer among emerging markets, hit a significant milestone by crossing the 85,000 mark for the first time in September this year.

Global financial services giant Morgan Stanley now forecasts that the BSE Sensex could soar past the historic 100,000 level by the end of next year, driven by robust income growth and substantial domestic capital inflows. The brokerage firm predicts the Sensex could reach an impressive 105,000, bolstered by macroeconomic stability.

When the Sensex surpassed the 85,000 mark, several economists echoed similar optimistic predictions.

On September 24, the Sensex reached a record high of 85,044. On the same day, the Nifty index rose by 30 points, closing at a record 25,975.

"The 100,000 mark is imminent, whether by the end of this year or early next year. It's a steep climb, but India is clearly in the midst of a stock market bull run," said Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, in an interview with IANS.

Meanwhile, foreign institutional investors (FIIs) have shifted their strategy, adopting a buyer's stance. Market analysts noted on Saturday that the Indian economy remains robust despite geopolitical challenges, ending the continuous selling phase by FIIs.

Siddhartha Khemka of Motilal Oswal Financial Services Ltd highlighted that FIIs started December on a positive note, significantly boosting market sentiment.

The ongoing boom in the Indian stock market has led to a tremendous increase in the market capitalization of the Bombay Stock Exchange (BSE). The market cap of BSE has once again surpassed Rs 450 lakh crore.

In the past three trading sessions, both the Sensex and Nifty have delivered returns exceeding 4 percent. During this period, the market cap of BSE has surged by over Rs 10 lakh crore.

Currently, the market cap of all companies listed on the BSE exceeds Rs 454 lakh crore.