Indian Stock Market in the Next 10 Years

Alida

It is not easy to predict the future of Indian Stock Market. The future is full of uncertainties, and there are multiple possible outcomes of an action; each one is interconnected. The human mind is not capable of predicting the future accurately. However, with the help of artificial tools and by taking care of past data, we can make estimates of statistics.

It is hard to estimate data accurately, even for one year, because in a single year, we face many unforeseen situations about which we don’t have a clue. You have opened this article to read market predictions for the next 10 years, right? 

Let’s start with the main content: what is the Future of the Indian Stock Market in the next 10 years?

Start of Major Bull-run for the Next 10 Years

If we believe the findings of market experts, then there will be a major bull run for almost a decade, i.e., the next 10 years.

You will be able to see a handsome amount of profit in companies’ balance sheets. On May 27, Raamdeo Agarwal. Co-founder and joint managing director of the popular trading platform Motilal Oswal Financial Services (MOFSL) stated that he thinks the S&P BSE Sensex can hit the 2,00,000 mark in the upcoming 10 years.

If we go as per this prediction, then Sensex will multiply 4x. Currently, it is around 57,142 – he advises investors to invest in India and have faith in the country.

How Will the Indian Stock Market Achieve this Monumental Feat?

Raamdeo Agarwal said that he thinks corporate profit will grow at the CAGR of 15% for the upcoming 10 years, which is higher than the country’s GDP growth rate of 12 to 13 % at nominal GDP.

In the past 10 years, it has been observed that S&P BSE grew at a CAGR of 10%; it was 19,445 in March 2011 and became 49,509 in March 2021.

Further, Mr. Agarwal added that, from 2011 to 2021, the country faced many unforeseen circumstances like Demonetisation, Covid Pandemic and the IL&FS fiasco.

According to Mr. Agarwal, the Indian Economy grew at a CAGR of 4% during that period. It became 1.7 trillion in 2010 to 2.6 trillion in 2020, which is low compared to countries like China and the United States.

However, Mr. Agarwal expects the Indian Economy to hit the $5 trillion mark at the end of 2029.

Suggested Investment Strategy to be Followed in the Next 10 Years

Mr. Raamdeo Agarwal suggests that investors should follow “value migration” investment strategy to maximize their returns.

In value migration strategy, profits and market-cap combine and become superior business design from outmoded business design.

Mr. Agarwal believes this strategy will create opportunities for sectors that see value inflow.

Conclusion

Predicting the future is not easy and requires a lot of experience. Still, the chances of predicting an accurate future are nil. However, we get an estimate of the statistics by understanding historical figures. In this article, we have shared statistics, both historical and future. Let us know what you think about them and your thoughts on the Future of the Indian Stock Market.

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