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Sensex can cross 100,000 mark in just 10 years: Morgan Stanley

The technological leap for India has come through reforms such as Aadhaar, Jan Dhan and the GST

Samie Modak  |  Mumbai 

Morgan Stanely
Morgan Stanely

The government thrust on could result in a threefold increase in India’s gross domestic product (GDP) and equity market capitalisation in the next 10 years, said
 
“India’s drive has raised our confidence in long-term growth estimates. We forecast to reach $6 trillion, equity market capitalisation to rise to $6.1 trillion and the market value of financials and consumer sectors to hit $1.8 trillion and $2 trillion, respectively, by 2027,” said the brokerage.


"We see the BSE Sensex crossing the 100,000 mark, albeit the bulk of the returns are likely to be front ended in the coming five years," added.
 
Ridham Desai, managing director, India, said, “Around 90 per cent of the market gains could happen in the next five years itself.”
 
The technological leap for India has come through reforms such as Aadhaar, an initiative to biometrically identify all citizens; Jan Dhan, a scheme aimed at providing bank accounts to every household; and the (GST), a unified and digital indirect tax.
 
“These reforms have digitised India and brought the country to an inflexion point in terms of growth, with a  concomitant impact on stock returns, financial sector dynamics, consumption growth, and e-commerce activity,” said The brokerage has also issued a list of stocks — mostly from the financial and consumption space —that could benefit by the ‘story”.
 
Bajaj Finance, Edelweiss, HDFC Bank, ICICI Prudential Life, Kotak Mahindra Bank, LIC Housing Finance and M&M Financial Services are the stocks in the financial space that could benefit. Among the consumption stocks are Asian Paints, Eicher Motors, ITC, Maruti Suzuki and Ultratech Cement. expects global stocks such as Alibaba, Amazon and Visa Inc to gain from the digital India theme.

First Published: Thu, September 28 2017. 10:00 IST
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