Morgan Stanley predicts Indian market rebound by mid-2026

Business Nov 05, 2025

Morgan Stanley thinks India's stock market is set for a comeback by June 2026, after a recent dip caused by slower growth and stretched valuations.
Analysts say things are turning around, with key macroeconomic factors improving.

Sensex forecast and sector picks

They're aiming for the Sensex to reach 89,000—maybe even 100,000—by June 2026.
The reasons? Expected RBI rate cuts, easier banking rules, and hopes for smoother ties with China and a likely India-US trade deal.
Morgan Stanley also points to stronger exports and less reliance on oil as signs of steady growth ahead.
Their sector picks: Financials, Consumer Discretionary, and Industrials.