Nifty and Sensex touched all-time highs last week. Indian companies are rushing in to tap the capital markets and raise funds. The price of crude is rising. Interest rates have risen tremendously. Looking at the various macro economic indicators, one wonders if this is the right time for investing in the stock market. Will there be enough liquidity in the system to lap up the new public issues? Do rising crude prices and rising interest rates signal the end of the bull run? No, says Morgan Stanley.
Morgan Stanley believes SENSEX will touch 50,000 by 2020. Most people would laugh this out. At the moment a target of 50000 for the sensex seems impossible. I had the same feeling a few years back when I saw an interview of Rakesh Jhunjhunwala on CNBC predicting a target of 12000-15000 for the SENSEX when the SENSEX was below 6000. Everybody including the anchor of the show laughed it out thinking Jhunjhunwala was just trying to be humourous. But he wasn’t. He was damn serious. Last week the SENSEX reached his target of 15000. When SENSEX first hit the 12000 mark, Jhunjhunwala revised his target to 25000. Now Morgan Stanley has indicated a target of 50000 for the SENSEX. If Indian companies continue to grow at the pace they are presently growing at, SENSEX will cross 50000 much sooner than 2020. My top 3 picks continue to remain
- Larsen & Toubro
- BHEL (and)
- IVRCL Infrastructures
