The Indian stock market has been on a continuous upward trend, breaking new records every day. Recently, the Sensex crossed the 85,000 mark, sparking curiosity among investors about when it will reach the highly anticipated milestone of 100,000 points. Many experts believe that the Sensex could achieve this feat sooner than expected.
Growth Momentum: From 85K to 100K
It took about one and a half months for Sensex to rise from 80,000 to 85,000, and now it needs to gain another 17.5% to hit the 100,000 mark. According to financial analysts, this could happen by 2025. If Sensex continues to grow at its historical compounded annual growth rate (CAGR) of around 16%, it is likely that the market will reach this magical figure by the end of 2025.
Expert Predictions for Sensex 100,000
Financial experts have different timelines based on market conditions. Some bulls on Dalal Street are confident that Sensex will reach 100,000 within the fiscal year 2025. However, according to Vaibhav Porwal, co-founder of Dezerv, given the current market conditions, Sensex could grow at an annual rate of 12-15%. This implies that it might take between 18 to 24 months to hit the 100,000 mark.
He suggests that the market is performing well, and even though growth might slow down occasionally, the long-term trend is strong enough to support reaching the milestone soon.
What’s Driving the Surge?
Several factors contribute to the rising Sensex, including increased interest from foreign investors. Foreign institutional investors (FIIs) have become more attracted to the Indian stock market in recent years. In the calendar year 2024, foreign investment totaled around ₹92,000 crores, and the figure was approximately ₹1.7 lakh crores in 2023. Analysts believe that foreign investors, who previously hesitated, are now more open to investing at higher valuations, which is expected to further fuel the rise.
Historical Performance: Sensex’s Rapid Growth
Sensex’s performance over the years showcases its growth potential. Since its inception in 1979, Sensex has grown 850 times, offering investors massive returns. If you had invested ₹1 lakh back in 1979, it would be worth ₹8.5 crores today.
In just the past 14 years, Sensex has quadrupled its value, reflecting the strength of the Indian market. As foreign investments continue to rise and the government’s focus on economic growth sharpens, the market is expected to maintain its upward momentum.
Disclaimer: The analysis and suggestions provided in this article are based on the views of individual financial experts. It is advised to consult with certified financial professionals before making any investment decisions, as stock market conditions are subject to change.
