Morgan Stanley predicts that India’s macro stability will persist, driven by fiscal consolidation, rising private investment, and a favorable gap between real growth and real rates.
The firm believes that India could be among the best performing emerging markets in 2025 due to strong earnings, macro stability, and domestic flows (DF).
Morgan Stanley sees a 30% probability of the Sensex hitting 1,05,000.0 by December 2025, while in the base case scenario, it sees the index hitting 93,000.0. The premium over the historical average reflects greater confidence in India’s medium-term growth cycle, lower beta, higher terminal growth rate, and a predictable policy environment.
The Analysis firm’s base case target for Sensex is 93,000.0, indicating an upside potential of 14.0% to Dec 2025.
