It may sound utopian in the backdrop of months-long downslide on bourses, but a US-based equity research group sees India’s benchmark index Sensex scaling a milestone of 1,00,000 points within next 15 years.
This would mean an unimaginable rally of over 10-times from the level seen just a few days ago, when Sensex was toiling below 10,000-point mark after a meltdown that began more than a year ago.
The Sensex had more than halved to trade below 8,000-point mark in October last year after scaling a record high of over 21,000 points on January 10, 2008.
Unperturbed by the sharp fall, US-based global equity research group Elliott Wave International, which specialises in analysis of technical charts of stock movements, believes that the recent surge in Indian market is the beginning of a long-running bull cycle that could continue for 15 years.
The recent upsurge began on March 9 and the Sensex has gained over 2,500 points or by more than 30 per cent. “If the price and time proportions between the waves in the 2003-2008 rally continue, the Sensex should hit 100,000 in about 15 years,” research group’s Asia-Pacific Financial Forecast editor Mark Galasiewski told PTI.
In its report for Asia-Pacific markets, based on analysis of technical charts, Elliottt Wave has said there were strong indications of “a resumption of the bull market in Indian stocks”.