Only a matter of time before Sensex touches 100,000-mark: Chris Wood

The S&P BSE Sensex can climb the 'wall of worry' and hit the 100,000 mark soon, believes Christopher Wood, global head of equity strategy at Jefferies. This implies an upside of nearly 62 per cent from the current levels the index closed at 62,502 points on Friday.

- PUNEET WADHWA

This may not be a tall task, as it implies a compounded annual return of 12.47 per cent over the next four years. The Sensex has delivered compounded annual returns of 12.3 per cent and 12.2 per cent in the past 5 and 10 years, respectively.

Wood believes India remains the best structural story across world markets. "With the structural story still intact, GREED & fear continues to take the view that it will only be a matter of time before the Sensex reaches the 100,000 level, a target of fascination to India's delightfully noisy financial media. This target, on a five-year view, now assumes trend 15 per cent earnings per share (EPS) growth and that a five-year average one-year forward price-earnings (PE) multiple of 19.8x is maintained," Wood wrote in his weekly note to investors, GREED & fear.