Delhi. Morgan Stanley has reaffirmed its optimistic outlook on India, predicting that it will be one of the top performing emerging markets in 2025. The firm has projected a 14 per cent growth in the BSE Sensex, estimating that it will reach 93,000 by December 2025 in its base case. In a bullish scenario, the Sensex could climb to 1,05,000, while a bearish scenario suggests a possible decline to 70,000. The brokerage is particularly positive about sectors such as financials, consumer discretionary, industrials and technology, while it is giving less importance to other sectors. India’s strong earnings, macroeconomic stability and robust domestic capital inflows make it an attractive investment destination, according to Morgan Stanley’s latest strategy report.
Despite a 6 per cent decline from their all-time highs in October due to massive selling by foreign institutional investors (FIIs), Indian benchmarks – Sensex and Nifty – remain attractive. Morgan Stanley believes that “India is still a market beater,” bolstered by consistent government policy actions that strengthen the long-term narrative. In the previous trading session, the Nifty 50 rose 241 points, or 1 per cent, to 24,708, while the Sensex closed 810 points, or 1 per cent, higher at 81,766. Looking to 2025, the brokerage forecasts that it will be a stock picker’s market, a reversal of the macro-driven trends seen since the COVID-19 pandemic. Policy easing is likely, including a reduction in the cash reserve ratio (CRR) from 4.5 per cent to 4 per cent, which could increase liquidity and support economic growth.
