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Sensex Prediction: Morgan Stanley Cuts Target To 82,000 Pts — Bull Run Over Before Starting?
@Source: republicworld.com
Sensex Prediction Today: Morgan Stanley has revised its target for the BSE Sensex, lowering it from 93,000 to 82,000 for December 2025. Despite this downward adjustment, the new target still suggests an upside of around 9% from current levels, reflecting continued optimism about India's market potential.According to the firm, this revised level implies the Sensex would be trading at a trailing price-to-earnings multiple of 23 times, which is slightly above the 25-year historical average of 21 times.The higher valuation is attributed to increased confidence in India's medium-term growth cycle, a relatively lower beta compared to global markets, expectations of a stronger terminal growth rate, and a predictable policy environment that supports economic stability.In conjunction with the reduced market target, Morgan Stanley has also trimmed its GDP growth forecast for FY2026, lowering it by 40 basis points to 6.1%.The outlook for FY2027 has similarly been adjusted, with projected growth now at 6.3%, slightly below the previously expected 6.5%.Despite the tempered growth outlook, Morgan Stanley expects inflation to remain well-behaved, averaging around 4% in FY2026. This falls comfortably within the Reserve Bank of India's target range and indicates that price stability may support consumption and investment activity.However, the firm has also cut its earnings estimate for FY2026 by 13%, citing the adverse impact of global macroeconomic conditions.While the broader economic outlook has been moderated, Indian stock markets delivered a strong performance on Tuesday, boosted by positive global developments.Investor sentiment improved significantly after the United States announced tariff exemptions for certain technology products, which helped drive gains across major Indian indices.The Nifty 50 closed at 23,328.55, gaining 500 points or 2.19%, while the BSE Sensex ended at 76,734.89, up by 1,577.63 points or 2.10%.Midcap and smallcap indices also posted strong gains of around 3%, indicating broad-based market strength.Sector-wise, the rally was led by Realty, Automobiles, Metals, Financial Services, and Media. Most sectors participated in the market uptrend, showing widespread investor interest.Among individual stocks, top performers included IndusInd Bank, Shriram Finance, Larsen & Toubro (L&T), Tata Motors, and Axis Bank. On the flip side, Hindustan Unilever Limited (HUL) and ITC were among the few names that closed in the red.
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