Sensex fundamentals.

Message

Originally posted by bijoy_ajj

Hi Basantji & other TEDies,

 If ever the market hits 35k and more .. it means BSE index shares have gone up.. so fundamentally speaking there revenues and profit should really sky rocket .. Is it really possible?.. What really will make there buisness blosom like that?.. If the market moves up i have seen that penny stocks and meduim n small scale stocks rise up without much of a reason..  So  even ordinary shares will also give good returns..?

I just is tryin to figure out why such hipe is given to indian share market compared to other markets.. 

Market at 35K or double in 5 years is 15% CAGR.. Few things that will lead it to trigger this 15% CAGR is "GDP  will grow at rate of 9-10% and inflation of 5-6%" and hence inflation adjusted growth of corporate profits/EPS should grow on average of 15% [same as market]. Now market can reach 35K sooner if there's PE expansion.