GUWAHATI: Global investment bank and financial services firm Morgan Stanley has projected that the BSE Sensex could climb to 89,000 points by June 2027, implying an upside of around 15 per cent from current levels.
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The benchmark index was trading at around 77,600 on Tuesday, July 7. According to historical market data, the Sensex's all-time high stands at 86,159.
In its latest report, titled India Equity Strategy Playbook – Outperformance Ahead, Morgan Stanley said the recent underperformance of Indian equities was cyclical rather than structural, suggesting that the market remains well-positioned for medium-term growth.
Indian markets had performed relatively poor in recent months due to multiple global factors, including geopolitical tensions in West Asia that disrupted supply chains and pushed up crude oil prices.
Despite these challenges, the investment bank said it expects India's equity markets to outperform as economic growth accelerates, supported by improving macroeconomic fundamentals, a favourable policy environment and a stronger corporate earnings cycle.
Morgan Stanley also outlined different market scenarios in its outlook. Under its bull-case scenario, the Sensex could rally to 100,000 points, while under its bear-case scenario, the index could decline to 66,000 points.
The report further projected that earnings of Sensex-listed companies would grow at a compound annual growth rate (CAGR) of 16 per cent through the financial year 2028-29.