New Delhi, Jan 7 || India’s equity markets could provide robust returns in near future due to impressive valuations, trailing performance, macro stability and the growth cycle, a report said on Wednesday.
The report from MS Research predicted a 13 per cent upside for BSE Sensex to touch 95,000 by December 2026 citing a 50 per cent probability.
The firm assumed continued fiscal consolidation, higher private investment and a positive gap between real growth and real rates to provide this base case scenario of Sensex touching 95,000.
Sensex earnings were projected to compound at 17 per cent annually through fiscal 2028.
“For the first time in nearly five years, equity valuations look favourable relative to short-term interest rates and our modified earnings yield gap is pointing to upside for equities,” the report said.