Sensex will hit 1 lakh mark in 5 years: Chris Wood of Jefferies

Chris Wood of Jefferies predicts that the Sensex will reach 100,000 in a matter of time based on a trend 15% EPS growth assuming a five-year average one-year forward PE multiple of 19.8x is sustained. However, Wood also highlights two stress points in Indian equity - Modi's re-election and a reduction in retail investor activity. Nevertheless, dedicated emerging market investors are slightly overweight in India relative to history, despite India's neutral weighting in the MSCI benchmarks being inappropriately low.

Sensex will hit 1 lakh mark in 5 years: Chris Wood of Jefferies
Chris Wood of Jefferies predicts that the Sensex will reach 100,000 in a matter of time based on a trend 15% EPS growth assuming a five-year average one-year forward PE multiple of 19.8x is sustained. However, Wood also highlights two stress points in Indian equity - Modi's re-election and a reduction in retail investor activity. Nevertheless, dedicated emerging market investors are slightly overweight in India relative to history, despite India's neutral weighting in the MSCI benchmarks being inappropriately low.