The stock market is making new records every day. Sensex is at the level of 77000 points while Nifty has also touched close to 23500 points. Amidst this situation, international rating agency Moody’s has predicted that the Sensex may rise by 14 percent in the next 12 months. A Moody’s report said that the market was already expected to rally due to NDA’s return to power. We believe that the government can continue to focus on macro stability i.e. inflation. The report further stated that the market expects further structural reforms in the coming days.
The report said the companies will outperform with a consensus 2025-26 revenue growth forecast of 500 basis points. “Our 12-month BSE Sensex target is 82,000, which represents an upside of 14 percent.”
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Expectations of structural reform
Now with continuity from the government, we believe the market can expect further structural reforms, the report said. Moody’s said India’s stock market is making new highs and the debate now is how to take the market materially higher. According to the report, Modi 3.0 will have much in the way of positive structural changes in the next 5 years in power.
What to pay attention to in the budget
The Moody’s report also talks about the various measures investors expect from the government, including the upcoming budget in July. Accordingly, potential increase in infra expenditure may lead to reduction in logistics costs. At the same time, selective manufacturing such as defense, electronics, aerospace, food processing, renewable energy and large-scale housing can be boosted. Moody’s says we believe this will be India’s longest and strongest bull market ever. Maintain investment.