India’s market cap can ‘easily’ jump ten-fold in the next two decades, economist says!

[CaptainMaverick]

KEY POINTS

• India’s market capitalization can easily grow to $40 trillion in the next 20 years, driven by stronger investor confidence and robust economic growth, analysts said. 
• After overtaking Hong Kong in December, the country’s market is now ranked the fourth largest in the world, valued at over $4.6 trillion.
• “India has the largest number of listed companies in the world globally at over 6,000 and they like raising equity earlier in their life cycle,” explained Sujan Hajra of Anand Rathi Share and Stock Brokers. 

India’s market capitalization can easily grow to $40 trillion in the next 20 years, driven by stronger investor confidence and robust economic growth, analysts said. 

“We can easily hit $40 trillion by that time,” said Sujan Hajra, chief economist at Anand Rathi Share and Stock Brokers, citing the country’s strong economic growth and “far more stable” currency.

 

Manish Chokhani, director of investment services firm Enam Holdings, is even more bullish and predicted Indian markets could surge to $60 trillion in the next two decades.

India’s benchmark Nifty 50 index soared 20% in 2023. After overtaking Hong Kong in December, the country’s market is now ranked the fourth largest in the world, valued at over $4.6 trillion. On Monday, the Nifty 50 and BSE Sensex surged to fresh closing highs of 22,666 and 74,742, respectively, Refinitiv data showed.

“India’s GDP growth has led to companies increasing their earnings and that is resulting in the stock market performance,” said Atul Singh, CEO and managing director of wealth management firm LGT Wealth India. 

India’s Ministry of Statistics said the country’s economy grew 7.2% for financial year 2023 and is estimated to grow 7.6% in financial year 2024. The country’s financial year starts on April 1 and ends on March 31.

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In contrast, Singh noted that China’s economic growth has not led to stock market appreciation in recent years. Last year, China’s economy grew 5.2%, matching the official target of around 5%. However, the benchmark CSI 300 has declined three years in a row, shedding 11.4% last year.

 

“So the growth in India’s stock market is driven by real earnings growth … That process of nominal GDP growth converting into earnings growth and stock market returns will remain intact even in the next 20 years,” Singh told CNBC in an interview.

India also has a “pipeline of new capital” that can continue to boost market valuations, Hajra said. India saw 220 initial public offerings in 2023, the highest of any country according to EY.

“India has the largest number of listed companies in the world globally at over 6,000 and they like raising equity earlier in their life cycle,” explained Hajra.

‘Opportunities are everywhere’ 

India’s markets have become more expensive after the recent rallies. The benchmark BSE Sensex has a price-to-earnings ratio of 25.44, compared to the Shanghai Stock Exchange and Shenzhen Stock Exchange’s average P/E ratio of 12.25 and 21.12, respectively.

Despite those high valuation multiples, analysts said India should still be part of an investor’s core allocation. 

Goldman Sachs’ Asia-Pacific portfolio strategist Sunil Koul advised investors to pay more attention to large cap stocks as he predicts there will be a shift away from small and mid-cap stocks.  

“One of the key views we have coming into the year is that you should see a rotation in the markets. It was the year of mid and small-caps, and that seems to be changing already over the past one month,” Koul told CNBC’s “Street Signs Asia” last week. 

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LGT Wealth India’s Singh, however, said “opportunities are everywhere.” 

He recommended paying attention to the financial services sector as “there are great companies that have a lot of secular growth,” he noted.

 

[CaptainMaverick]

slipper shott to E.N.D.I.A alliance fear p*rn!! 

@JANASENA @Spartan @Android_Halwa

[Konebhar6]

I absolutely believe  India will achieve this. However improvements need to made in the Corporate Governance area.

Too many sham companies and there is no audit on the financial results of the company. If Adani group is doing this, imagine other companies. 

[JambaKrantu]

20 years tarvata NRI kids reverse migrate avtaaremo India ki..US lo standard of living is slowly declining and India lo increasing

[Android_Halwa]

Pre covid, naa friend okadu returned to India, 2019 la he invested good amount money in Indian stock exchange and safeside kosam konni PSU's la invest chesindu....his stock portfolio is worth now in excess of 5 cr...barely 1 cr invest chesindu.

[Konebhar6]

1 hour ago, Android_Halwa said:

Pre covid, naa friend okadu returned to India, 2019 la he invested good amount money in Indian stock exchange and safeside kosam konni PSU's la invest chesindu....his stock portfolio is worth now in excess of 5 cr...barely 1 cr invest chesindu.

Yeh some of my investments in India have skyrocketed esp last 1 yr. PSU's are going crazy. 

I was going through some recommendation from SBI Securities investments and the stocks they recommended. It was from 2014. Most stocks appreciated min 10 times. On average 20 times and some even more.

[Konebhar6]

1 hour ago, Android_Halwa said:

Pre covid, naa friend okadu returned to India, 2019 la he invested good amount money in Indian stock exchange and safeside kosam konni PSU's la invest chesindu....his stock portfolio is worth now in excess of 5 cr...barely 1 cr invest chesindu.

A friend invests in some MF and he said he continuously gets 20% return every year. Wife+Husband working and he puts half his salary every month as SIP in it. It has become quiet big now.

[Konebhar6]

If anyone wants to buy stocks in India, these are good buys in todays markets

• HDFC Bank
• Kotak Mahindra Bank
• Asian Paints
• Hindustan Lever
• Divi's Labs
• Coal India
• SBI
• Infosys
• Reliance

[Tellugodu]

1 hour ago, Konebhar6 said:

A friend invests in some MF and he said he continuously gets 20% return every year. Wife+Husband working and he puts half his salary every month as SIP in it. It has become quiet big now.

This Index gave - 23% CAGR since inception (2005) - Nifty Smallcap250 Momentum Quality 100 Index

https://www.niftyindices.com/indices/equity/strategy-indices/niftsmallcap250-momentum-quality-100

[Tellugodu]

1 hour ago, Konebhar6 said:

If anyone wants to buy stocks in India, these are good buys in todays markets

• HDFC Bank
• Kotak Mahindra Bank
• Asian Paints
• Hindustan Lever
• Divi's Labs
• Coal India
• SBI
• Infosys
• Reliance

I would include -

INOXCVA

SMALLCAPS - ETF

Avantel LTD

AGI Greenpac

DCX systems 

 

[argadorn]

1 hour ago, Konebhar6 said:

If anyone wants to buy stocks in India, these are good buys in todays markets

• HDFC Bank
• Kotak Mahindra Bank
• Asian Paints
• Hindustan Lever
• Divi's Labs
• Coal India
• SBI
• Infosys
• Reliance

How do buy in India 

[Konebhar6]

35 minutes ago, argadorn said:

How do buy in India 

Open a DMAT with Zeroddha. You can do it online. Takes about 30 minutes and its a process. Link your bank account in India to it. Start buying stocks.
 

Else some of these stocks are available in US as ADRs. I think I posted the list here in this forum sometime back. 

For e.g. INFY, HDFC Bank, Wipro, ICICI Bank, and a few more are available.

[jpismahatma]

@bhaigan emantavu? Invest chestunava ? Ledha?

[bhaigan]

52 minutes ago, jpismahatma said:

@bhaigan emantavu? Invest chestunava ? Ledha?

Chuddam mama

Monna evado IMF lo BJP govt. stooge cheri tappudu lekkalu ichadu need to analyze more on it