Morgan Stanley sees Sensex hitting 89,000 in 2026
Morgan Stanley expects the BSE Sensex to climb to 89,000 by June 2026, about 12% above current levels.
Their optimism comes from India's push for fiscal discipline, more private investment, and lower real interest rates helping fuel growth.
Why the bank is bullish on India
If you're curious about investing or just tracking India's economy, this is a big call.
After a flat year in 2025, Morgan Stanley sees annual earnings for Indian stocks growing nearly 17% through FY2028—thanks to factors like strong demographics and rising exports.
The bank gives this scenario a 50-50 chance if inflation stays in check and government spending remains disciplined.
Sector-wise outlook and global resilience
Morgan Stanley is especially upbeat on financials, consumer discretionary, and industrials—but less so on energy or healthcare.
They point out that India's stock market tends to hold steady during global downturns and that steady household investments plus lower inflation could boost valuations even further.