How long should you stay invested in Sensex to reduce loss, risk? Expert shares his estimate

The Indian stock market bounced back sharply on Tuesday, erasing all losses incurred after Donald Trump's April 2 tariff announcement, and delivered a broad-based rally that reinforced investor confidence. All sectoral indices closed in the green, highlighting strong buying momentum across segments. The advance-decline ratio stood at a robust 8:1, while India VIX dropped 19%, signaling a notable decline in market volatility—an encouraging sign for investors eyeing stability. 

The auto sector surged 5–7%, fuelled by optimism that Trump may soften tariff measures. Tyre stocks also joined the rally, rising 3–4% in line with the broader auto pack, offering short-term trading opportunities and signalling improving sector sentiment. Index heavyweights like Reliance Industries, HDFC Bank, and ICICI Bank were key drivers of the rebound, powering benchmark indices higher.

Expert and seasoned investor Advait Arora, in a post on social media platform X, said the probability of incurring a loss in the Sensex decreases significantly the longer you stay invested.

He said over a 1-year period, the chance of loss stands at 26.4%, but this drops to 10.8% over 3 years and 7.2% over 5 years. Extending the horizon further, the probability reduces to just 5.2% over 7 years, and a mere 0.8% over 10 years, underscoring the importance of long-term investing in equity markets.

"Do you know your chance of making a loss drops as investment period grows. Loss % chances in #Sensex:
1 year: 26.4%
3 years: 10.8%
5 years: 7.2%
7 years: 5.2%
10 years: just 0.8%
Stay invested, Reduce Risk. Time is your biggest safety net," he wrote on X.

After today's Sensex gain, Arora said: "Morgan Stanley sees Sensex at ~ 82K by Dec 2025, a ~ 9% upside from current levels!
🔹 India remains a top outperformer
🔹 Strong macro & private capex support
🔹 FY26 GDP growth at 6.1%
🔹 Valuation premium reflects long-term strength
🔹 Focus: Financials, Industrials, Consumers
📈 India’s growth story stays intact — short-term noise, long-term potential."

Morgan Stanley has projected the Sensex to reach approximately 82,000 by December 2025, implying a 9% upside from current levels. The global investment bank remains bullish on India, reiterating its view that the country will continue to be a top-performing market among emerging economies.

The forecast is anchored in a strong macroeconomic backdrop, with key drivers including resilient domestic demand, stable inflation, and a revival in private sector capital expenditure (capex). Morgan Stanley expects India’s GDP to grow at 6.1% in FY26, signaling sustained momentum in economic expansion despite global uncertainties.

The brokerage acknowledges that India trades at a valuation premium compared to its peers, but views this as a justified reflection of the country's structural strength, policy continuity, and long-term growth trajectory. In its sectoral strategy, Morgan Stanley highlights a focus on financials, industrials, and consumer stocks—sectors that are closely tied to domestic economic activity and stand to benefit the most from the ongoing investment and consumption cycles.

While short-term volatility and geopolitical concerns may create market noise, Morgan Stanley asserts that India’s long-term growth story remains firmly intact, supported by favourable demographics, rising productivity, and a deepening equity culture.