Sensex @ 1,00,000 Eminently Achievable On 5-12 months View: Jefferies’ Christopher Wooden

How a lot can Dalal Road indices rise within the coming years? Christopher Wooden of Jefferies thinks {that a} goal of 1,00,000 is “now eminently achievable” for the Sensex on a five-year view.

In his Greed & Concern report  – Wooden’s weekly notes to traders –  the International Head of Fairness Technique at Jefferies mentioned the goal is foundation the idea of a development of 15 p.c earnings per share (EPS) progress and {that a} five-year common a number of of 19.4 is maintained.

Chris Wooden, as he’s broadly identified, expects the Sensex to hit the 1,00,000 mark in FY27 or “someday in late 2026”. This will likely appear an aggressive assumption, mentioned Wooden, however India has all the time been a inventory marketplace for progress traders with the a number of to go along with it.

The remarks from the veteran fund supervisor come at a time when benchmark indices Sensex and Nifty50 have receded about six p.c from all-time highs, touched in October 2021. In January 2022, each got here inside 1.5 p.c of the peaks however reversed course as soon as once more.

Sensex 5-year goal degree assuming 19.4X PE

Wooden mentioned the sturdy progress outlook explains the persevering with resilience of the inventory market regardless of perceived excessive valuations. The Nifty now trades at 20.5 occasions one-year ahead earnings, he mentioned.

True, the inventory market has corrected by 5.1 p.c since peaking in October, however the market would have suffered far more have been it not for persevering with wholesome inflows into home mutual funds, the veteran fund supervisor added.

Listed here are another highlights from the Greed & Concern observe:

“In a G7 world the place worth traders might lastly take pleasure in an prolonged interval of outperformance overgrowth till no less than the Fed performs one other U-turn, India ought to be a first-rate object of focus for growth-oriented fairness traders, be they Asian and rising market traders or international traders,” he mentioned.

He mentioned the home demand focus will definitely be maintained in Jefferies’ long-only Indian portfolio, which stays broadly unchanged since its inception in July 2021.

Jefferies’ India long-only fairness portfolio incorporates 16 shares, with Reliance Industries and ONGC having the utmost weightage.