Jefferies: "Indian stock market valuation to double by 2030"

India's stock market is poised for strong growth in the coming years, reaching a value of ten trillion dollars by 2030, thanks to the country's economic growth and reforms, according to a note published by investment bank analysts Jefferies last week, writes Business Insider.

India's stock market has a valuation of $4.3 trillion, making it the fifth largest stock market in the world, and stocks listed here have delivered a consistent annual return of 10% over the past twenty years.

Jefferies analysts believe investors can still expect returns of 8-10% over the next five to seven years. "Assuming that returns are in line with those of the past 15-20 years, and given the new listings, India's market value will reach nearly $10 trillion by 2030 - impossible for major global investors to ignore," they wrote. those at Jefferies.

In recent years, India has become a hotspot for global capital flows, especially as investors leave China. Turbulence in the Beijing-led economy, a sharp fall in the stock market and a crisis in the real estate sector have caused investors to turn their attention to India, which has helped the stock market rise by 31% last year. Meanwhile, reforms in the Indian financial system, favorable geopolitical dynamics, a developing entrepreneurial environment and the country's focus on service exports enhance the prospects for strong growth in India and the stock market. Over the past decade, India's GDP has registered a compound annual growth rate of 7%.

"In the next four years, India's GDP is likely to reach five trillion dollars, making it the world's third largest economy by 2027, overtaking the fastest growing Japan and Germany and benefiting from the demographic situation (constant supply of the workforce), strengthening institutional power and improving governance," said the note from Jefferies, according to Business Insider.