Brokerage firm Morgan Stanley believes that the Sensex can reach the level of 89,000 in the coming year. The company says that the Indian market is now coming out of six quarters of slow earnings slowdown and is again entering a period of strong growth.
Sensex may reach 89,000 by June 2027
Morgan Stanley analyst Ridham Desai has set a target of 89,000 for BSE Sensex by June 2027. This is about 15% more than the current level. The brokerage believes that there is a 50% chance of its completion.
According to the report, medium-term economic growth in India, stable policies and strong domestic demand will support the market. The company estimates that India’s economy will continue to remain strong in the coming years.
Earnings pick up after six quarters of slowdown
Brokerage says that the earnings of Indian companies have now started increasing again. The pace of earnings was slow for the last six quarters, but now the situation is improving due to RBI policies, interest rate cuts, improvements in the banking sector and increasing liquidity. Investment is increasing rapidly in sectors like energy, defence, semiconductor, fertilizer and data centres, which will benefit the earnings of companies.
Big confidence in India’s growth
The report says that despite global tensions and expensive commodity prices, India can achieve nominal growth of up to 12% in the coming years. India has already contributed about 18% to the global GDP growth in 2025 and this share may increase further in the coming time. India’s young population, rising income and potential expansion in the manufacturing sector have been considered the country’s biggest strengths.
Sensex can even go up to 1 lakh
The brokerage has also given a bull case, in which the Sensex can reach the level of 1 lakh by June 2027. Its probability is said to be 25%. If crude oil prices remain below $80 per barrel and India’s economic policies are successful, then the market may rise further.
However, in a weak situation the Sensex can fall even to 66,000. This can happen when oil goes above $120 per barrel and the global economy slows down.
Bet on which sectors?
Morgan Stanley has liked the financial, consumer and industrial sectors the most. At the same time, less confidence has been expressed in the energy, material and healthcare sectors. In the report, IT sector has been described as a dark horse. The company believes that Indian IT companies can get huge benefits from the increasing use of AI technology.
