By Admin 
Sensex Outlook: There is an uproar in the stock market amid the increasing attacks by America and Israel on Iran. The decline in the Indian stock market continued for the fourth consecutive day on Wednesday. However, meanwhile, a report from brokerage house Morgan Stanley has surprised investors. It says that Sensex can reach the level of 107000 by December this year.
Sensex ‘cheaper’ than gold
Morgan Stanley in its report has described Sensex as ‘cheaper than gold’. It can be understood in this way – Yesterday Sensex fell by 1122 points, whereas in this atmosphere of war, gold prices have increased. That means the purchasing power of Sensex has decreased compared to gold. When the Sensex-Gold ratio is low, it indicates that stocks are undervalued compared to gold. In such a situation, investors feel that investment here will give good returns in future.
What is the opinion of experts?
The brokerage says that market stress does not coincide with better macro fundamentals and a favorable policy environment. That is, on one hand the economic condition of the country is strong, but despite this the stock market is falling down. In his report, Ridham Desai of Morgan Stanley described the current phase as a ‘rift between market and macro’ and said that this disconnect is creating an opportunity to buy high-quality Indian equities.
That means the country’s economy is really strong. The fall in stocks due to war is temporary. In this war environment, when the shares of even good companies fall by 10-15 percent due to selling pressure, sensible investors see them as ‘discount’. Instead of panicking and selling shares, this is the right opportunity to accumulate shares of good companies, which can give better returns later. In such a bull-case scenario, the benchmark index is expected to rise to 107,000 by December 2026.
33 percent jump in Sensex
The report said, “We believe that this shock is creating a bad situation in the market for Indian stocks.” The report also said that this was due to factors such as passive outflows, hedge fund positioning and global risk-off rather than any deterioration in domestic fundamentals.
Despite the recent poor performance, Morgan Stanley remains constructive on the medium-term trajectory for Indian equities. It has set the base-case target of BSE Sensex at 95,000 by December 2026, which means a rise of 18 percent from the current level and the bull-case target is 107,000, which means a rise of 33 percent.
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