Domestic benchmark equity index BSE Sensex is estimated to surpass 1,00,000 mark in the coming decade, supported by continued "incremental growth in corporate earnings", according to a brokerage.
"We believe the Sensex will compound at least 15% - 16% in the next decade and will be at 1,20,000 by 2025. We believe that the market cap of listed companies will be at 3x at close to $5 trillion from the current levels of $ 1.6 trillion in the next 10 years," says Jimeet Modi, CEO of SAMCO Securities.
The index performance has almost remained flat so far this year, as a slew of local and global factors capped its gains.
However, market experts believe that an uptrend in the stock markets will remain in place and recommend investors to put money in equity markets.
"Equity markets will do well due to multiple reasons, but primarily because of earnings growth. We expect corporate earnings growth in India to compound at 12%-15% in the years to come," The Economic Times quoted Modi as saying.
Analysts expect investors' money getting tripled in the next 10 years from now. Surprisingly, the Sensex has posted a gain of about 600% in the past 15 years.
So, if an investor puts Rs 5 lakhs in stock markets at current levels, he may see his capital amount rising to Rs 15 lakhs in 10 years.
"I believe that over 10 years, you will make more money in Indian shares than in US shares," said Marc Faber, Editor & Publisher, The Gloom, Boom & Doom Report, in an interview with ET Now on Wednesday.
In the next few years, India will become home for many companies with a market capitalisation of $100 billion and the wealth generated by these companies will be far above those in the developed markets.
"Under normal condition, the SENSEX could easily surpass the levels of 125,000. FY16-end target would be 33,000-34,000," said Tushar Pendharkar, Equity Strategist at Right Horizons Financial Services.
Reforms and the government's developmental programmes like Make in India, Digital India, and, Smart cities project are expected to drive the India's growth higher, making the country an attractive destination for overseas as well as domestic investors.