Mumbai, Jan 6
Morgan Stanley expects India to be one of the best performing emerging markets in 2025, with a base case projection for Sensex to rise by 18 per cent by December end.
In its latest note, the US-headquartered investment bank sees 18 per cent base case upside for the BSE Sensex by the December end.
“India's macro stability is strong due to improving terms of trade and flexible inflation target,” said the global brokerage, forecasting earning of 18–20 per cent earning growth over the next four to five years.
Private capital expenditure cycle, re-leveraging of corporate balance sheets and unfolding of a structural rise in discretionary consumption are among reasons for this. A reliable source of domestic risk capital also contributes to the capital expenditure
Infrastructure spending, restructuring GST rates, direct tax reforms, more free trade agreements, and focus on energy transition are other areas that will contribute to India's macro stability, said Morgan Stanley in its note.