Sensex surged from 70,000 to 80,000 in under seven months, hinting at a potential reach of 1 lakh by December 2025
Foreign portfolio investors (FPIs) are back in the market, hoisting Sensex above 80,000 in the index’s fastest 10,000-point rally. There is reason to believe FPIs are here to stay, and their pullout in May and June was a blip, not the trend. Uncertainty over election results is behind us, and the process of ministry formation provides investors assurance of policy continuity.
The maiden budget later this month is expected to set a reform roadmap over the next five years, while persisting with fiscal prudence. The earnings season is likely to bear out that India is a market FPIs can’t afford to stay away from. Few other emerging markets can match India’s projected 7.2% gross domestic product (GDP) growth and, hence, earnings, although valuations are looking stretched.
The maiden budget later this month is expected to set a reform roadmap over the next five years, while persisting with fiscal prudence. The earnings season is likely to bear out that India is a market FPIs can’t afford to stay away from. Few other emerging markets can match India’s projected 7.2% gross domestic product (GDP) growth and, hence, earnings, although valuations are looking stretched.