Morgan Stanley has raised its target for the Sensex, citing the coming growth cycle is not fully priced in.
The S&P BSE Sensex is expected to touch 50,000 by the end of next year against an earlier target of 37,300 by June 2021, the global investment bank and financial services company said in a note, as it maintained an ‘overweight’ rating on India.
“Covid-19 infections appear to have peaked, high-frequency growth indicators are coming in strong, government policy action is beating expectations, and Indian companies are picking up activity through the pandemic. Thus, we expect growth to surprise on the upside, rates trough to be behind, and real rates to remain in negative territory for several months,” Morgan Stanley said in the note. It also raised the earnings per share estimate for the Sensex by 15%, 10% and 9%, respectively, for FY21, FY22 and FY23. That’s 6-7% above…
