Morgan Stanley Bullish on India Sensex

Morgan Stanley, a global brokerage firm, has issued a highly optimistic forecast for the Indian equity markets, predicting that the S&P BSE Sensex will reach 95,000 by December 2026. This projection implies a significant upside potential of 22% from current levels. The firm's 'India Equity Strategy Playbook' report highlights several key factors underpinning this bullish outlook, including depressed valuations, improving earnings momentum, and cautious investor positioning, which are typically observed near the end of market downturns. Morgan Stanley also noted strong underlying fundamentals in India, such as robust domestic demand, policy stability, and a recovery in capital expenditure. The report suggests that India's share of global corporate profits now exceeds its index weight by the widest margin on record, and the S&P BSE Sensex is trading at its cheapest level when measured against Gold, indicating an attractive entry point for long-term investors despite global risks like geopolitical tensions.