Morgan Stanley Bulls India

Morgan Stanley says Indian stocks could climb enough to put the Sensex at 95,000 by December 2026, even after this month’s market swings. (timesofindia.indiatimes.com) The brokerage’s base case implies about 22% upside from the April 8 close of 77,563, according to reports on the note by Times of India and Economic Times. Morgan Stanley strategist Ridham Desai said a “new bull market” is taking shape in Indian equities. (timesofindia.indiatimes.com) (economictimes.indiatimes.com) Morgan Stanley’s reported case rests on stronger earnings, supportive domestic money flows and valuations it sees as reasonable after a weak stretch for Indian stocks relative to other markets. Times Now said the firm valued the index at 23.5 times trailing earnings, versus a 25-year average of 22 times. (economictimes.indiatimes.com) (timesnownews.com) The call lands as Indian stocks are still moving sharply with oil prices and geopolitics. The Bombay Stock Exchange showed the Sensex at about 76,723 at 12:14 p.m. on April 13, down more than 800 points on the day. (bseindia.com) (msn.com) That gap explains the bet: Morgan Stanley is making a medium-term call on profits and capital flows, not a forecast for a straight line higher from one trading session to the next. The reported target runs through December 2026, about eight and a half months from the April 8 reference close. (timesofindia.indiatimes.com) (economictimes.indiatimes.com) India’s growth backdrop is part of the argument. The International Monetary Fund country page lists India’s 2026 real gross domestic product growth at 6.4%, keeping it among the faster-growing major economies. (imf.org) Other forecasters are also watching external risks. The Asian Development Bank said on April 10 that conflict in the Middle East could weigh on the region’s outlook, even as developing Asia is still projected to grow 5.1% in 2026 and 2027 under an early stabilization scenario. (adb.org) Morgan Stanley is not alone in highlighting sector winners. Republic World’s summary of the note said the firm was overweight financials, industrials and consumer discretionary shares, tying the target to expected earnings growth of 17%. (republicworld.com) The next test for that 95,000 call is whether earnings and domestic inflows can outweigh oil shocks and global risk aversion over the rest of 2026. For now, Morgan Stanley’s forecast is a marker of how bullish one major Wall Street bank remains on India. (timesofindia.indiatimes.com) (bseindia.com)