Morgan Stanley has expressed strong confidence in India’s growth story, predicting that the Sensex could reach 89,000 by June 2027. This target reflects a 15 percent upside from current levels. The brokerage believes India is emerging from a six‑quarter slowdown and is set for a new phase of earnings recovery supported by macro stability and rising private investments.
The firm expects Sensex earnings per share to grow steadily, projecting 3,344 for FY26, 3,785 for FY27 and 4,525 for FY28. Nominal growth is likely to remain close to 12 percent, while easing oil prices and supportive policies may further strengthen the outlook. Domestic investors are playing a leading role with record inflows through systematic investment plans, while foreign positioning remains at multi‑year lows.
Morgan Stanley is overweight on financials, consumer discretionary and industrials, while underweight on energy, materials and healthcare. It remains neutral on information technology but sees opportunities in artificial intelligence. The brokerage highlights India’s contribution of 18 percent to global GDP growth in 2025, expecting this share to rise further.
Risks include global tensions, crude oil crossing 120 dollars a barrel, and domestic challenges such as farm productivity and judicial capacity. Even so, Morgan Stanley believes India offers a strong structural story for investors in the coming decade.
