Sensex to Reach 25,000 in 4 Years

Call us crazy, and with apologies to stock market

prognosticator Harry Dent in the USA, The India Street is
making a prediction that the Sensex will reach 25,000 in 4
years. Dent has made bold predictions about the Dow that
proved true in the 1990’s based on his demographic analysis of
the USA. We are finding similar characteristics in India’s
stock market that will push the Bombay Stock Exchange
Sensex to above 25,000 within 4 years.

In 2005, Rakesh Jhunjhunwala predicted the Sensex would top 25,000 in 2010.
Jhunjhunwala success in the market has given him a lot of credibility with financial
insiders. Some market experts have echoed Jhunjhunwala and point to real estate, retail
and pharmaceuticals as the new growth engines for India during the next 5 years. As
regular readers here know, retail has yet to be opened on a large scale to foreign interests.
Currently only single brand retail is allowed.

The India Street is predicting it will happen in 2011 based on the past Sensex growth rate
of 41% during the last 4 years and GDP growth of 8% on average. We don’t expect 41%
year over year, but based on future demands for Indian products and services and the
unstoppable demographic trends will push the market to over 25,000 by 2011.

If trading is allowed by foreigners of non-Indian origin, The India Street predicts the
Sensex will reach 25,000 in a much shorter period. Currently, non-Indian foreigners can
only invest through mutual funds or ETF’s that track aspects of the India Stock Market.
By opening the market to foreigners, the world will get a chance to participate in the
great India dream.