Mumbai: Morgan Stanley has predicted equity benchmark index Sensex to touch 1,00,000 level in the next one year in the bull case scenario. The multinational financial services company advocated for the Indian domestic market and projected a 30 per cent rise of the Sensex reaching the 105,000 mark by December 2025. The firm’s base case scenario has set a target of 93,000, which indicates a 14 per cent upside from current levels.
Morgan Stanley is positive about Sensex growth even as the Indian market took a hit in October-November 2024 which was a result of weak Q2 Results of the current financial year and relentless selling by the foreign institutional investors.
Morgan Stanley’s Sensex Predictions: Bull, Base, and Bear Cases
While explaining its base case scenario prediction, the global brokerage firm said Sensex can appreciate to the 93,000 mark by December 2025 as factors such as financials, consumer discretionary, industrials, and IT services are well positioned to benefit from Artificial Intelligence. The firm also said that sustained private investment and a favourable differential between real growth and interest rates will also lead the rally.
The global financial services company predicted Sensex rally to 1,05,000 by the end of 2025 if oil prices at the international level remain below USD 70 per barrel, the Reserve Bank of India (RBI) comes forward with more monetary easing policies, and government reforms like GST rate cuts.
FDI and FII investment in India
It may be noted that Foreign Direct Investment (FDI) inflows into India crossed the USD one trillion milestone in the April 2000-September 2024 period. This is a healthy sign for the international community that investing in India is safe and key investment destination globally.
Meanwhile, after being on a spelling spree in the past two months (October and November), exchange data showed that foreign investors have staged a strong comeback to Indian equities. FII investment stood at Rs 24,454 crore in the first week of December as global conditions stabilise and rise in expectations of US Federal Reserve rate cuts.
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Morgan Stanley predicts a significant Sensex rally, forecasting a bull-case target of 1,05,000 by December 2025, driven by factors like AI adoption in key sectors, sustained private investment, and favorable interest rates. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
