Sensex will breach the 1 lakh mark in next 5 years, says Ravi Singh of Religare Broking; advises this portfolio mix

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Dr Ravi Singh, SVP - Retail Research, Religare Broking, sees Sensex breaching the 1 lakh mark in the next 5 years. In an interview, the expert believes that now is the time to book some profits considering the volatility we will be seeing in the coming time due to corporate results and Lok Sabha elections. He advised investors to allocate 40 percent of their portfolio to large-cap stocks for stability and 30 percent each to small and midcaps for alpha generation over a longer time horizon.

Edited Excerpts: The government’s capital spending initiatives and strong manufacturing activity have contributed to this phenomenal run. Additionally, policy continuity after the general election and continued focus on infrastructure development are expected to sustain India’s economic growth. India’s economic growth is impressive, positioning it as the world’s fastest-growing major economy, outshining even China in terms of growth projections.

Considering all these factors we can see Sensex breaching the 1 lakh mark in the next 5 years. There are multiple factors behind this rally- • Strong global cues, both Dow Jones and NASDAQ hitting all-time high levels. • Expectations of rate cuts by Fed and other major central banks are on the cards; due to this, we are seeing a good rally in equities.

• With strong GDP numbers, India saw a growth rate for the third quarter which stood at 8.4%, beating estimates by every economist and analyst. Yes, it will be prudent to book some profits at the current levels considering the amount of volatility we will be seeing in the coming time due to corporate results and Lok Sabha elections. 48,550 was a crucial level for Bank nifty as it was its previous swing high level and it has decisively broken this