If earnings remain robust over next 3-4 years, Sensex at 1,00,000 would just be a formality, says this fund manager

The Indian equity market is at a lifetime high, with the Nifty 50 breaching the 21,000 mark and the Sensex scaling 70,000 points. A confluence of factors, including the Bharatiya Janata Party's (BJP) electoral success in the assembly polls, foreign institutional investors (FIIs) turning buyers, positive growth figures, and expectations of a US Federal Reserve rate cut, contributed to this remarkable upswing.

Aishvarya Dadheech, founder and Chief Investment Officer (CIO) at Fident Asset Management, remains optimistic about the bullish momentum. While Fident is awaiting its PMS license, Dadheech has been in the investment industry for over 17 years. He managed the Ambit PMS for six years in his last job.

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Anticipating robust gross domestic product (GDP) growth of 7.5 percent to 8 percent for the next two years, he emphasises the importance of corporate earnings in wealth creation. Dadheech advises investors to focus on high-quality businesses rather than market indices. He believes a 12-14 percent compounding of the stock market is achievable over the next three years. "If earnings remain robust over the next three to four years, 1,00,000 on the Sensex would just be a formality," he says.