New Delhi: Morgan Stanley has projected the Indian stock market’s benchmark index, Sensex to touch 89,000-level by June 2026. The global financial advisory firm also stated that in a bull case scenario, the Sensex could scale 1 lakh-mark as early as June 2026.
The first prediction reflects around 8 percent gain from current levels. However, in the bull case scenario, the jump will be around 30 percent.
“Strong macro stability with improving terms of trade, declining primary deficit, and low inflation volatility; mid- to high-teens earnings growth annually over the next three to five years, led by an emerging private capex cycle, releveraging of corporate balance sheets, and a structural rise in discretionary consumption; a reliable source of domestic risk capital; a dovish RBI; ranged oil prices; and two positives from the recent geopolitical event:
(i) India has a new doctrine on terror which makes future terror attacks an act of war, a strong deterrent to future terror strikes, also making it easy for future governments to act decisively against terror, unlike the past, and (ii) upside surprise in military performance underscoring strong progress made in strategy, air combat, navigation and precision attacks,” a note from Morgan Stanley said.
Giving its views on the investment strategy, the brokerage said a preference can be made for sectors including Materials, Utilities, Healthcare, Industrials, and Underwater Energy.
Morgan Stanley also cautioned of significant risks like global recession or near recession. “A global recession or near recession would challenge our call. Long-term concerns include capacity constraints in the judiciary, AI’s effects on the tech industry, low productivity in the farm sector, and state-level fiscal challenges,” the report mentioned.
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Morgan Stanley forecasts India’s Sensex index to reach 89,000 by June 2026, with a potential bull case scenario reaching 100,000. This prediction is based on strong macro stability, high earnings growth, and a reliable domestic risk capital. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
