Nifty @50,000: Motilal Oswal’s Raamdeo Agarwal engages in crystal ball gazing

Nifty @50k is appears a fancy target specially when the index is being constantly pulled down by rising crude oil prices every time investors give it a lift. Speaking at the 22nd Motilal Oswal Annual Global Investor Conference in Mumbai, Raamdev Agarwal said it is highly probable that Nifty 50 will touch 50,000 sometime before 2035. Aggarwal's guess rests on assumption that Nifty's earnings will grow at a rate of about 12% every year.

Kolkata: Can India’s most keenly followed stock market index Nifty 50 reach 50,000? Perhaps, more appropriate is to ask, when can it reach 50,000? Raamdeo Agarwal, chairman of Motilal Oswal Financial Services, thinks Nifty 50, could almost double to 50,000 in the next six to nine years. He said that the index can achieve this position anytime before 2035. He has outlined three different timeframes based on changes in price-to-earnings multiples.

Agarwal’s estimate rests on the assumption that Nifty’s earnings will grow at a rate of about 12% every year, which corresponds to an estimated nominal GDP growth rate of 11%. After this, the path to reach 50,000 can be decided in three ways, which will depend on how many multiples the market is willing to give. If the P/E multiple stays constant at 20–21x, it will take around eight years for Nifty to reach the target of........

© News9Live