Mark Mobius & Raamdeo Agrawal's big forecast; predict steep rise for Indian markets in next 5 years

Two of the biggest market voices are extremely optimistic about the Indian stock markets.

At the Business Standard BFSI Insight Summit, Raamdeo Agrawal, the Chairman and Co-founder of Motilal Oswal Financial Services made a big prediction, saying that the Indian markets have the capacity to double in value over the next five years and even quadruple in the following decade.

Raamdeo Agrawal cites corporate upgrades and robust Q2FY24 earnings, which exceeded expectations, as indicators of India's promising economic cycle.

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Agrawal also highlights the enormous savings potential in India, estimating that the country's savings could grow from $10-12 trillion to $100-150 trillion in 25 years. With the addition of three million demat accounts per month, the potential for growth in the Indian stock market is substantial.

Meanwhile, global investment guru Mark Mobius believes that the Sensex could reach the 1 lakh mark in the next five years. While the case for equities has weakened due to a 5 percent risk-free return from US 10-year Treasuries, the long-term growth story for India remains intact, Mobius told Moneycontrol on the sidelines of Morningstar Investment Conference.

Mobius sees opportunities for investment in India, especially if there is a further correction in the market. Recently, the Nifty and Sensex have corrected nearly 3.5%.

On September 15, 2023, the S&P BSE Sensex achieved a record high of 67,927, with the Nifty50 reaching 20,222 levels. However, unforeseen factors like a drop in US Treasury yields and geopolitical conflicts led to a nearly 6 percent decline in the index.