If you invest in the stock market, then this news is important for you. Global brokerage firm Morgan Stanley has released a new target for the BSE Sensex for 2025.
Morgan Stanley Slashes Sensex Target to 82,000
This target is 82,000. The big thing is that earlier this target was 93,000, that is, it has been cut by about 12 percent.
However, Morgan Stanley believes that by December 2025, the Sensex can still see a profit of about 9 percent. But now less growth is expected than what was expected earlier.
13% Reduction in Company Earnings Estimates
The brokerage firm said that they have reduced the earnings estimate of companies by about 13 percent. The slowdown in global markets may affect India’s performance, even though India is currently doing better than other countries. But, the movement of BSE Sensex is not going to be the same as was previously estimated. This is the reason why Morgan Stanley has cut it by 12 percent.
Increasing inclination towards big stocks
According to the report, now the market’s focus has shifted from ‘macro’ factors to stock selection. Morgan Stanley has also reduced the active position in its portfolio. Talking about the sector, the brokerage firm has given preference to financials, consumer cyclicals (such as auto and durables) and industrial sectors. At the same time, they have kept energy, materials, utilities and healthcare sectors in the weak category. Also, now their inclination has increased towards big stocks as compared to small and mid-cap companies.
Long-Term Outlook: Sensex Earnings to Grow 16% Annually by 2028
Morgan Stanley believes that if India’s economy maintains fiscal discipline, private investment accelerates and the gap between real growth and real interest rate remains balanced, then Sensex can reach its new target. The report also said that by 2028, the earnings of the Sensex can grow at an average rate of 16 percent annually.
If the situation turns out to be better than expected, such as major reforms by the government, reduction in GST rates and progress on agricultural laws, then the Sensex can also go up to 91,000. But the brokerage firm believes that the probability of this bullish scenario is only 30 percent. In March 2025, they had given this figure of 105,000, which has now been reduced to 91,000.
