Top News

Morgan Stanley, a global investment bank, increased its Sensex objective to 89,000 by June 2026, indicating an 8% increase from the present levels.

The firm’s growing confidence in India’s long-term development narrative, bolstered by solid economic fundamentals and a stronger forecast for profitability, is reflected in this adjustment.

After India’s GDP growth prediction was revised higher, Morgan Stanley also increased its profits per share (EPS) expectations by over 1%.

In contrast to the 25-year average of 21x, the research predicts that the Sensex will currently trade at a trailing price-to-earnings (P/E) multiple of 23.5x.

Growing investor trust in India’s stable policy environment and medium-term development prospects is reflected in this premium valuation.

The brokerage business outlined a number of factors that contribute to India’s potential and resilience.

These consist of a healthy domestic investment cycle, low inflation volatility, a reducing primary deficit, and solid economic stability.

Over the next three to five years, it is anticipated that profits would expand at a mid- to high rate annually due to a rise in discretionary spending, improved corporate balance sheets, and rising private capital expenditures.

Despite recent developments across the world, the Indian stock market has shown exceptional stability, according to the research.

The conviction in India’s structural development narrative has been strengthened by the steady investment of retail investors.

It’s interesting to note that international investors’ stance on Indian stocks is at its lowest point since 2000, although there are early indications that this is changing.

The positive mood is further reinforced by the Reserve Bank of India’s dovish posture, steady oil prices, and steady policy assistance.

Additionally, Morgan Stanley commended India’s recent geopolitical approach, arguing that it has improved both national security and international trust in the nation’s leadership.

According to the analysis, this is probably a stock picker’s market in terms of investing approach.

The company has an overweight position in financials, consumer discretionary, and industrials, and it favors domestic cyclical sectors over defensives.