Can Sensex hit 1 lakh in 1 year? Morgan Stanley gives new target
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While describing the drawdown in Indian stocks from September 2024 high as an opportunity to buy India's long-term story, global brokerage firm Morgan Stanley has given a new target of 89,000 for Sensex by June 2026 in its base case scenario. And in the bull case scenario, of which there is a 30% probability, the brokerage says the headline index can hit 1 lakh as well. "Our new Sensex June 2026 target of 89,000 (8% upside) bakes in our new earnings estimates and is also rolled forward from the December 2025 target of 82,000," Morgan Stanley's equity strategist Ridham Desai said, adding that this level suggests that the Sensex would trade at a trailing P/E multiple of 23.5x, ahead of the 25-year average of 21x. The premium over the historical average reflects greater confidence in the medium-term growth cycle in India, India's lower beta, a higher terminal growth rate, and a predictable policy environment. In the lat...