BENGALURU, May 23 Reuters India39;s benchmark indices will hit new highs by end2024, according to a Reuters poll of equity analysts who have upgraded their outlook from three months ago, as retail investors plough money into one of the world39;s most expensive stock markets.

Despite growing concerns that India39;s equity markets are overvalued, local investors have so far ignored warnings and driven share prices to record highs over optimism that India39;s economy will continue to outpace its peers.

The benchmark BSE Sensex index, which gained nearly 19 in 2023 and has risen over 2 for the year, was forecast to add another 8 to reach 80,120 by end2024, the May 1422 poll of 26 equity analysts showed.

It was then expected to add another 4 to reach 83,300 by mid2025. Those estimates were an upgrade from median predictions of 78,550 and 80,920 in a February poll.

Though the pace of advance has been muted in the last 45 months, the overall bias and trend still looks positive… earlier we were seeing mixed signals from global markets, but now the majority of them are also doing well, said Ajit Mishra at stockbroker Religare.

Overall we are expecting the market to reach further highs though…the pace would be gradual. We might not see any major correction.

The Indian economy was forecast to have grown over 7 in the fiscal year 202324, with growth expected to moderate only slightly to 6.5 and 6.7 over the next couple of years, according to a separate Reuters poll.

The…