Stock market expected to surge, Sensex could reach 1,07,000 by December 2026; these are the 5 major reasons for the boom.

News Topical, Digital Desk : The Indian equity market ( Stock Market Outlook ) is expected to witness a strong recovery in the next one year and the Sensex could reach the level of 1,07,000 by December 2026, which is 26 per cent higher than the current level, a report said.
Global brokerage firm Morgan Stanley's report said that this rally will be supported by policy reforms being undertaken by the Indian government and a pick-up in economic activity. The report said that the slowdown is over and earnings will see strength in the coming months.

India's long-term growth rate remains strong

According to the brokerage firm, India's long-term growth remains strong due to government policy decisions, which are improving domestic factors. However, risks to the economy remain from external factors.
The report further stated that India's valuations are also supporting strong growth in the coming months, and foreign portfolio investors hold the lowest stake in the Indian market ever.

Sensex will reach 1.07 lakh

In a bull-case scenario, the BSE Sensex could reach 107,000 by December 2026, a 26% increase from its current level. In a base-case scenario, the Sensex could touch 95,000, a 13% increase from its current level.
Morgan Stanley previously predicted the Sensex would reach the 100,000 mark by June 2026. Analysts believe the Indian stock market has significantly improved in valuation, having reached its lowest level in October 2025.
They stated that positive growth can be expected in the coming months, which would support a market re-rating. The Sensex is currently trading around 84,700, down nearly 800 points from its all-time high of 85,478.25.

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