Sensex to hit 1,07,000 in bull run.. Morgan Stanley predicts..

 

Morgan Stanley has said that the Sensex is likely to go on a bull run this year. It has revealed in its latest report that the target of 1,07,000 can be reached by the end of December 2025. However, it has been said that this will be possible only if India's growth and global growth are also good.

The Indian stock market is rebounding again. Despite suffering huge losses on Budget Day, it recovered the next day. It has reached new record levels. In this context, global brokerage firm Morgan Stanley has released a latest report. It has said that Indian shares are preparing for re-rating again. This means that prices are preparing to increase significantly.

Reasons..

Morgan Stanley Equity Strategists Ridham Desai and Nayant Parekh explained why the Sensex is likely to rally bullishly, including the reasons. The hawkish atmosphere in the Indian economy after Covid is now easing. The measures taken by the RBI and the government to promote economic growth are contributing to the growth of the markets. Measures such as reducing interest rates, easing controls on banks, increasing the money supply, the government continuing large-scale capital expenditure, reducing taxes, and encouraging announcements in the budget will lead to rapid growth in Indian economic growth. With this, corporate profits (earnings) are likely to increase significantly soon. Morgan Stanley analysts analyzed.

Other things

India has signed trade agreements with countries like America and Europe. Meanwhile, relations with China are improving. With this, Indian companies will grow even more. Exports will soar. According to Morgan Stanley, Indian stocks have some unique opportunities now. Share prices are cheap compared to other countries. Shares have not performed much in the past few years. There is strong support from the government and the RBI. The rupee is undervalued. Foreign investors have invested even less. If a new buyback cycle starts, the market will rise.

If the Sensex bull run continues, there is a 50 percent chance of reaching 95,000 by December 2026, the Morgan Stanley report said. It said that there is a 30 percent chance of reaching 1,07,000. For this to happen, the price of oil should be below $ 60 per barrel. It clarified that domestic and global growth should be good.

There is also a risk

If oil prices go above $ 90 and the RBI raises interest rates again, there is a 20 percent chance of the Sensex falling to 76,000, the Morgan Stanley report also said.

Markets closed in gains on Monday

While domestic stock markets recorded good gains on Monday. The Sensex rose 485 points to settle at 84,066. The Nifty 50 index rose 174 points (0.68%) to settle at 25,867. Positive sentiment was seen among investors due to trade developments and foreign fund inflows.