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- Morgan Stanley expects a rise in the Indian stock market.
- BSE Sensex may reach the level of 95,000 points by December.
- Market momentum depends on oil prices and company earnings growth.
- Investment opportunities are visible in financial, consumer and industrial sectors.
Morgan Stanley Market Outlook: Morgan Stanley has shown a positive attitude towards the Indian stock market. The brokerage believes that despite the current weakness, BSE Sensex can reach the level of around 95,000 by December this year. Which shows a possible increase of about 24 percent. This indicates that a good recovery may be seen in the market in future. Let us know, why does the brokerage have so much confidence?
Expectation of rise in stock market
Morgan Stanley’s report shows that the possible rise in the market is going to be based on many factors. This includes factors like performance of the last 12 months, current valuation, position of foreign investors and return of the new income cycle.
The brokerage has set a target of 1,07,000 points for BSE Sensex, which indicates a possible gain of about 40 percent from the current level.
Will the market rise or fall in these circumstances?
According to Morgan Stanley, the rise in the market is going to depend on certain conditions. If crude oil prices remain below $70 per barrel. Also, if there is an annual increase of about 19 percent in the earnings of companies between financial years 26 to 28, then the market can go up.
At the same time, if the situation worsens, a decline may also be seen. The brokerage has given a bear case target of 76,000 for BSE Sensex, which shows a decline of 1 percent from the current level. Such a situation can happen when oil goes above $100. Also, the earnings growth of companies decreased and the Reserve Bank of India adopted a strict stance.
Which factors can provide support to the market?
In the coming time, the movement of the market is believed to be based on some important reasons. According to the report, if the government insists on reforms, then factors like power sector, artificial intelligence and increasing buyback of companies can strengthen the market.
If we look at the sectors, there are more opportunities in some areas. Financial, consumer discretionary and industrial sectors have been considered better. At the same time, it has been advised to be cautious about investing in energy, utilities and healthcare.
Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)
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