Indian stock markets have seen a robust rally since the new government's formation, closing at an all-time high in the last week. According to top rating agencies, the indices are set to gain new highs in the next 12 months.

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It was the second consecutive week when Indian frontline indices Sensex and Nifty made a new all-time high of 77,145 and 23,490 respectively, as inflation cooled off.

The stock market is attracting global funds which are going to accelerate soon.Moreover, the stock markets have emerged as a favourite investment destination for retail investors.

According to global rating agency Moody's, its "12-month forward BSE Sensex target is 82,000, implying 14 per cent upside".

In its latest report, Moody's said that the key benefit to the market of the NDA's re-election is "policy predictability, which will influence how growth and equity return pan out in the coming five years".

"We believe the government is likely to continue focusing on macro stability (i.e., inflation hawkishness) to inform policy," according to the report.