After Sensex hits 50,000, market experts say 1,00,000 on radar

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Analysts on Dalal Street maintained their bullish view on the domestic equity market after the benchmark equity index BSE Sensex scaled 50,000 for the first time on January 21.

Their views came after the market witnessed spectacular bull run from the lows of March 2020, when the market tanked due to the nationwide lockdown. The 30-share Sensex has soared 96% to its 52-week high of 50,184.01 from the 52-week low of 25,638.90, scaled on March 24 last year.

According to market experts, the liquidity expansion by the central bank, ample inflows by foreign institutional investors, discovery of Covid-19 vaccine and the change of guard in the US have been some of the factors propelling markets higher and higher.

Eyeing 1,00,000

While commenting on the further movement of the domestic equity market, Amar Ambani of YES Securities said he thinks that Sensex may surpass the magical figure of 1,00,000 by 2025. “We have entered a super-cycle for Indian equities, like we had seen in the year 2003. We see the high possibility of decisive reforms from the government, accelerated earnings growth and a continued liquidity flow chasing growth, in a period of weakening US dollar. A fresh upcycle has resumed for small and midcaps as well, after a long consolidation in 2018, 2019 and large part of 2020,” he added.

In one of the earlier bull runs, the 30-share index had soared over 500% to 20,873 on January 8, 2008 from 3,390 on January 1, 2003.

“I am a born optimist and now eyeing for 1 lakh mark on Sensex. However, it is not going to touch the level soon. The index normally trebles in 10 years. This time we may see Sensex hitting 1,50,000 in the next 10 years,” said market veteran Vijay Kedia and founder of Kedia Securities.

On the other hand, some analysts are cautious on the market for the short-term. Rahul Sharma, Head –Technical and Derivatives Research, JM Financial Services said, “What a day for Sensex to hit 50k.. 21st Day of the 21st Year, of the 21st Century! However, we believe this is more of a mental milestone but an important one. Since booking the profit is better than looking at the profit, we advise to take some profits around Nifty 14,800/15,000 levels and keep the portfolio’s hedged with Nifty Put Options of February Expiry. As a Budget Strategy for traders, it’s best to buy the expectation & sell the realisation.”