MUMBAI: In November 2017, Ridham Desai, one of the top equity strategists at large global financial firm Morgan Stanley, told a commercial channel that he expected sensex to hit the 100,000 point mark. within 4 to 5 years. This was at a time when the index was hovering around the 33,500 level and almost every fund manager worth his salt was struggling to make money on Dalal Street. Desai had said that the Indian market was on the cusp of a big rally as the drivers for the same were in place.
Market players were then very divided on Desai’s comments. For the most part, it was either the audacity of the crystal gaze or the recklessness of stupidity. For a small batch, it was an expression of hope. But no one was able to pull the neck and support such a bullish call. As memes weren’t in vogue at the time, Desai was spared from being trolled for his predictions.

Almost four years after Desai made this prediction, as sensex broke the 60,000 mark in the first trades on Friday, investors on Dalal Street now believe the 1 lakh mark is within their reach. They also believe India’s market capitalization could soon surpass the $ 5,000 billion mark, down from around $ 3.6 trillion now, and push GDP up to that magic number. They see a smooth descent path for the Indian market as several tailwinds are visible.
According to A Balasubramanian, Managing Director and CEO, Aditya Birla Sun Life Mutual Fund, the continuous flow of funds, the sector rotation of the market and the gradual opening of the national economy as the holiday season dawns is helping to maintain market momentum. The main fund manager, who manages around Rs 1.2 lakh crore in stock programs, also believes that when interest rates rise, at least during the initial period, this is a sign of return to growth. economy. Lately, analysts and investors have worried that when the US central bank starts to raise interest rates from its current near zero level, stock prices may correct themselves.
Sensex opened above the 60,000-60,159 point mark on Friday, up over 200 points from its previous close, hit a lifetime high at 60,333 and closed at 60,048, ie a gain of 163 points. Spurred on by a statement from the chief of the US central bank that the easy money of the world’s largest economy will continue at least until mid-2023, investors have broadly pushed up stock prices. Result, in two sessions, the sensex gained nearly 1,100 points. On the NSE, the Nifty gained 30 points to approach the 18,000 point mark when it closed at 17,853 points.
The rally in recent months has been helped by a steady, albeit sometimes slow, deployment of Covid vaccines around the world. It was also aided by a transfer of funds from China to India by global fund managers after the government of the world’s second-largest economy cracked down on several large corporations in an attempt to achieve a more equitable distribution of wealth. Over the past year, most Indian companies have also attempted to reduce their debt, which has also helped the domestic market recover, dealers and analysts said.
The strong market recovery in 2021 also enriched investors by Rs 75 lakh crore, with BSE’s market capitalization now standing at Rs 263 lakh crore.
So far this year, the index has risen from below 50,000 to its current peak, mainly driven by strong buys in major software majors (TCS and Infosys), twins Bajaj and HDFC, Reliance Industries and Bharti Airtel. Lately, after being limited for most of these months around the Rs 210 level, ITC has also rallied strongly, which has led to another party of memes on this Kolkata-based FMCG cigarette major. .
Sector-wise, stocks of metals and basic materials companies outperformed most other sectors. As the pandemic has forced users of these ingredients to realize their over-reliance on China and seek an additional source of supply, companies in these sectors have seen their fortunes turn, analysts say.
Foreign and domestic funds also pumped money into the stock market in 2021. While REITs infused nearly Rs 65,000 crore, mutual funds net bought stocks worth Rs 18,249. crore, according to official data.


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