Sensex Likely To Hit Fresh Highs This Quarter, Says Ramesh Damani

Veteran investor Ramesh Damani is optimistic about the near-term prospects of the Indian equity market and believes that the Sensex could challenge its previous all-time high of around 86,000, made in September–October last year. Recent geopolitical developments have reduced global risk premiums, setting the stage for a strong performance in equities, according to him.

The geopolitical shift triggered by President Trump's recent military actions has significantly eased uncertainty, Damani said. “What happened over the weekend has changed the contours of the Middle East conflict. Markets are beginning to sense a possibility of peace, and that is being priced in,” he noted.

He pointed out that the sharp rebound in global equities, particularly in Israel's Tel Aviv 25 Index, signals growing investor confidence. “TA-25 made a new high last week and has outperformed the Dow since the Hamas attacks. This suggests that investors are now looking ahead to a period of relative calm and renewed capital flows.”

While the current conflict could usher in a honeymoon period for risk assets globally, he cautioned that markets will soon pivot their attention back to the US domestic front—where challenges such as rising deficits, inflation concerns, and tariff threats still loom large.

Closer home, Indian equities are poised to benefit from the improving global backdrop, and recent fears are largely overdone, according to the market veteran. “The thousand-point rally we saw on Friday shows the market is like a powder keg—ready to go off. I wouldn't want to be short here,” he said.

Any dips triggered by global uncertainty or short-term volatility should be viewed as buying opportunities, Damani said. “This is the kind of market where corrections should be used to build long-term positions. India's structural story remains intact, and the market appears well-positioned to move higher,” he stated.

While Damani acknowledged that concerns around the US economy and its domestic politics could resurface in the months ahead, the immediate focus will remain on the easing of geopolitical tensions, he said. “The market's attention will soon shift back to fundamentals, and India stands to benefit from global risk-on sentiment,” he concluded.