Renowned brokerage firm Morgan Stanley has made encouraging predictions about the Indian stock market. In a new report, the company has estimated that the Indian market can perform the best among the emerging markets by 2025. Due to strong income growth, stable macroeconomics and domestic flow, the BSE Sensex can reach 1,05,000 points in the next one year.

Sensex can break the record

According to Morgan Stanley, in the base case, the Sensex can reach 93,000 points, which shows a growth of 14% from the current level. At the same time, in the bull case, this index is likely to reach 1,05,000 points. This estimate is based on the stable economic condition of the country, strong policy environment and high investment flow.

Confidence in India's economic stability

The report says that India's macroeconomic stability, such as fiscal consolidation, increased private investment and strong growth rate, can take the market in a positive direction. According to the report, the Sensex's earnings can grow by 17% annually by 2027 and in normal conditions this growth can remain above 15%.

What will happen in bull and bear case?

Morgan Stanley has done two analysis for Sensex.

in the bull case

Oil prices remain below $70 a barrel.

Possibility of reduction in inflation and reduction in rates by the Reserve Bank.

In this situation, Sensex can reach 1,05,000 points.

Income growth may increase to 20% in financial year 2024-2027.

in a beer case

Oil prices may go above $110 a barrel.

Global recession and slowing income growth.

Sensex may fall to 70,000 points.

Which sectors will be in focus?

Morgan Stanley has described finance, technology, consumer discretionary, industry and other sectors as suitable for investment. Small and medium sized companies are expected to perform better than large stocks.

Major Companies

The brokerage firm has kept FirstCry, Maruti Suzuki, Trent, Reliance Industries, ICICI Bank, SBI Life Insurance, HAL, L&T, Infosys and UltraTech Cement in its focus list.

Signal for investors

This report has expressed a positive outlook for the Indian market. However, this estimate depends on factors such as oil prices and the global economy. Investors have been advised to adopt long term investment to take advantage of the market opportunities.