Indian stock market is pure gold, the country will become 5th largest economy by 2024, says Goldman Sachs - What does it mean? Zee Business analyst decodes it for you
Stating India a pure gold in its report, Goldman Sachs believes the market capitalisation of the Indian stock market to grow by 40 per cent in the coming 3-4 years.
Stating India a pure gold in its report, Goldman Sachs believes the market capitalisation of the Indian stock market to grow by 40 per cent in the coming 3-4 years. This growth will mostly be fuelled by the new-age economy, Zee Business Senior Research Analyst Varun Dubey said decoding the brokerage report.
According to a Goldman Sachs report, the Indian share markets’ market capitalisation would grow to $5 trillion from a current market capitalisation of $3.5 trillion by 2024, Dubey said.
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The report further states, at least 150 new companies, including startups' initial public offer (IPO), will be launched and would be listed on Indian stock exchanges in the next 2-3 years. These companies would help the Indian market garner at least $400 billion, it said.
In the next couple of years, the Indian markets would come under the top five markets in the world, the global brokerage says in a report, adding that the Indian markets overall weightage would grow to 3.7 per cent from 2.8 per cent at present.
Goldman Sachs has huge confidence in Indian startups and unicorns and believes they would contribute most to India’s growth story, as they have raised around $10 billion.
Similarly, at least 67 startups in India fall under the unicorn category, of which 27 startups valuation alone in the financial year has crossed over $1 billion, the global brokerage firm mentions.
Eventually, the weightage of these new-age economy stocks in the Indian markets would grow to 12 per cent in the next 3-4 years as compared to 5 per cent at present. The market cap of the startups mulling to list on exchanges would eventually boost the overall market cap of Indian markets
The brokerage firm is overall bullish on the Nifty and Sensex, expecting both to grow and reach new peaks going forward, however, with that, it also mentions startups and the new-generation economy will mostly drive the Indian markets in the coming years.
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