New Delhi, April 15
Lower inflation and slower growth should allow the RBI to respond with a deeper easing cycle, with a cumulative easing of 100bps and two more cuts in 2025, a Morgan Stanley report said on Tuesday, pegging India's GDP growth at 6.1 per cent for FY26 amid global uncertainties.
The report also projected Sensex at 82,000 by December 2025, 9 per cent above the current level.
"India's 'low beta' is helping it to significantly outperform amid the global selloff, even while the index could reach multi-month lows. Key India-specific catalysts include continuing dovish actions from the RBI, stimulus through GST rate cuts, a trade deal with the US, and incoming growth data," said the report.
Morgan Stanley sees lower food inflation and lower oil prices, keeping food and non-food inflation at benign levels.
"We expect inflation to average 4 per cent in F2026, with the trend in the next few months remaining decisively below the 4 per cent mark," it maintained.