Sensex can be up 42,000-Morgan Stanley

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Mumbai: Global investment firm Morgan Stanley estimates that the 30-share BSE Sensex can go up to 42,000 levels by next September, which could show an upward bias of 11 percent from the current level.

Earlier this firm had speculated that in June 2019, the Sensex can go up to 3600, which was touched by the Sensex one year ago i.e. July 2018. Talking about this year, since January, the Sensex has seen an 11 percent jump and it is 28 percent higher than the 2017. In fact, with good financial results and domestic institutional investors, the Sensex has achieved this level. Brokerage houses other than Morgan Stanley have also expressed the possibility of this kind of market rally in coming days.

However, despite the rise in crude oil prices and the rupee depreciating against the dollar, the growth of the market has encouraged the investors. Morgan Stanley had estimated in June 2018 that the Sensex could go up to 44,000. In a bullish environment, the Sensex can jump 30%. In fact, the market is expected to maintain its fast before the next general election in India next year, and in the financial year 2019-20, the growth of income may increase by 29 and 26 per cent.

Meanwhile, in the current financial year, investors have invested more than Rs 12 lakh crore by investing in various stocks of BSE’s 30-stock benchmark index Sensex. This week, since March 28 this year, the Sensex has jumped 4,749.28 points, which is 14.40 per cent.

According to experts, this jump of the Sensex is encouraging among rupee’s rupee against dollar, rising prices of crude oil and rising concerns about the trade war between America and China. Due to this surge, market capitalization of listed companies in the Sensex rose by Rs 12,01,444 crore till Wednesday this week, to Rs 1,54,26,441 crore. On August 29 this year, the Sensex reached an all-time high of 38,989.65 points.

Meanwhile, the exit of investors from Gold Exchange-traded funds (ETFs) continued during August. According to the data, during the first five months of the current financial year, investors have withdrawn Rs. 241 crore from Gold ETF. According to the Association of Mutual Funds in India, after the withdrawal, the total asset under management (AUM) of gold funds slipped 7.5 percent and stood at Rs 4,445 crore at the end of August.