Morgan Stanley on Thursday said Indian markets are poised for a strong rally, with the Sensex likely to touch the 95,000 mark by December 2026.
In its latest India Equity Strategy Playbook report, the brokerage noted that the current mix of subdued valuations, improving earnings momentum, and cautious investor positioning typically signals the late stages of a market downturn. Under its base-case scenario, the Sensex is projected to reach 95,000 by December 2026, indicating a potential upside of around 22 per cent from Wednesday’s closing level.
The firm added that downside risks appear limited compared to the potential gains, calling the current phase an attractive entry point for long-term investors. It also highlighted that India’s market performance over the past year is near historic lows, while relative valuations have seen a sharp decline.
Despite this, underlying fundamentals remain strong, backed by robust domestic demand, policy stability, and a recovery in capital expenditure.