Morgan Stanley: Indian stocks set to bounce back by 2026
Morgan Stanley says Indian stocks, which struggled in 2025, are gearing up for a comeback.
The BSE Sensex could jump 13% by the end of 2026, thanks to government support and strong company earnings—even after missing out on the tech boom that boosted other Asian markets.
Why does this matter?
If you're following markets or thinking about investing, this is big.
India's stock index lagged behind global peers this year—its worst gap since 1993—but Morgan Stanley believes things will flip in 2026 with a broader market rally.
Even now, the Sensex is up over 8% this year and flirting with record highs.
What's fueling the optimism?
Morgan Stanley expects Sensex earnings to grow at a solid 17% annual rate through fiscal 2028.
This outlook is powered by policies making borrowing cheaper and boosting liquidity.
They're especially upbeat about financials, consumer-focused companies, and industrials—while being less keen on energy and health care right now.