70,000 justifications for market investment

The Sensex broke the 70,000 threshold for the first time three days after the Nifty reached 21,000 points. The BSE’s 30-share index reached 70,000 at 10.25 a.m. on Monday, but profit bookings caused the index to drop to 69,782 in the afternoon, its lowest point of the day. The index was 0.15%, or 103 points, higher at the end of the day than it was on Friday.

It took the Sensex over six years to climb from 35,000 on January 17, 2018, to the 70,000 mark. On July 25, 1990, the index first broke beyond the 1,000 mark. It has expanded at a compound annual growth rate of more than 20% ever since.

These days, the issue that keeps coming up in the minds of investors is: when will the Sensex reach the all-important 1,00,000 mark? Although not many experts are willing to wager on it, they believe that in the next five years, one may anticipate an average annual return from the stock markets of 12–15% due to favorable macroeconomic indicators, expected political stability, and shifting geopolitical conditions internationally.

According to managing director of Sundaram Alternate Assets Vikaas Sachdeva, “I think there is a broad-based rally underway, more than the Sensex.” He continues, “The sheer variety of successful businesses and the valuations that support their expansion are encouraging.”