Sensex can touch 61,000 mark by December 2021, Morgan Stanley claims these reasons

Global investment and brokerage firm Morgan Stanley is very positive about the outlook of the Indian stock market and the investment firm has made a big claim about the performance of the stock market in the year 2021. Morgan Stanley says that if the bull run continues in the market, the BSE Sensex (Sensex) will cross the 61,000-digit mark by December 2021.

Morgan Stanley said in its report that the Indian stock market will out-perform the E-Emerging Markets stock exchange in the year 2021. Let us tell you that Morgan Stanley has set a target for Sensex to reach the 55,000 mark in December 2021, which is more than 10% above the current level.

Morgan Stanley said that in the best case, profitability in the stock market is expected to be 50%. The investment firm said that if the bulls dominate the stock market, that is, in the bull-case scenario, the Sensex will reach 61,000 by December 2021, up 22% from the current level.

At the same time, if the bears dominate the stock market, Morgan Stanley said that in this case, the Sensex can slide and slip to the level of 41,000 points. However, Morgan Stanley said that our set of 16 leading indicators and 6 lagging indicators indicate that the market outlook will improve further in the second half of 2021.

Morgan Stanley said that India still has two main challenges. Lack of vaccine supply in Vartham and a mid-term problem of persuading people to take the vaccine. This report stated that the equity market is reviewing the situation, on which margins will depend.

This report has been prepared by Morgan Stanley’s Idea Equity Head Rhythm Desai along with Sheela Rathi and Nayant Parekh. In this report, the investment firm has placed it at 55 thousand without any change in the December 2021 target of BSE Sensex. This report stated that Sensex can trade at forward P / E 17.5x and trailing P / E at 21.2x.

Considering the dynamics of the market, the brokerage firm advised investors to invest in midcap and smallcap stocks instead of largecap. Morgan Stanley Consumer is bullish on discretionary, industrial, finance and utilities stocks.

At the same time, it has put a neutral stance on materials, consumer specifications. While it is bearish on the communication, energy, healthcare and technology sectors.

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