Sensex may hit 95k pts by December: Morgan Stanley report

MUMBAI: Sensex could hit 95,000 points by Dec according to a Morgan Stanley report. They are banking on a handful of tailwinds, which they believe, are set to support a strong bull rally in Indian stocks. The sensex target level has a 50% chance while there's a 20% probability that it could run past the one-lakh point mark to about 1.1 lakh points. On the other side, in a bear case scenario, the sensex could end the year at around the current level of 76K points.

The base case scenario of 95k for the sensex are backed by expectations of sustained macroeconomic stability, a revival in private investment, and a favourable growth-inflation dynamic. The projection by Morgan Stanley analysts Ridham Desai and Nayant Parekh also assumes continued strength in domestic demand, steady global growth and benign crude oil prices, all of which are expected to support corporate earnings and market valuations.

At 95k mark, the sensex would be up 24% from Thursday's level. A key driver of the target is the anticipated earnings upcycle, with sensex earnings forecast to compound at 17% annually through FY28, the report said. This earnings momentum, combined with a supportive liquidity environment and strong retail participation, is expected to keep equity supply-demand dynamics favourable, it said.


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