Sensex at 75,000 by year end in bull market: Morgan Stanley makes big prediction

New Delhi: Morgan Stanley has predicted that the Sensex may touch 22,000 in a bull market scenario by the end of the year. However, the investment bank noted that such a scenario is possible if the coronavirus does not make a comeback and the Reserve Bank of India (RBI) remains indifferent for a longer period.

But that’s not all, as Morgan Stanley listed other factors that could push the stock markets above current levels. For example, global bond indices could result in inflows of around $20 billion for the coming 12 months, Mint reported.

Also, fall in oil prices from current prices will play a key role in Sensex’s rally in the coming months. Morgan Stanley said that in the best case scenario, the Sensex can touch 62,000 by the end of December. The probability of such an event is 50%.

Morgan Stanley also believes that the ongoing Ukraine-Russia tensions tend to end in weeks. It also predicts that there will not be a major restriction of economic activity as a result of future Covid-19 waves and growth will improve as per its forecasts.

The investment bank expects government policy to remain supportive even in the best-case scenario. It also expects the RBI to make a calibrated exit from the central bank. In such a situation, the Sensex can see a 22% compound annual growth during the financial year 2022-24.

On Wednesday, the Sensex fell below the 60,000 level by breaking 566 points. According to a PTI report, it was pulled down by heavy selling in banking and IT stocks amid weak global trends. Read also: Lemon is being sold for Rs 400 a kg in Jaipur! Lemonade made a distinctive drink: report

From the 30-share pack, HDFC Bank, HDFC, HCL Technologies, Tech Mahindra, Infosys, TCS, M&M, Kotak Mahindra Bank, Axis Bank were the major laggards.
In contrast, NTPC, Tata Steel, Power Grid, Bharti Airtel, Nestle and Larsen & Toubro were among the gainers, PTI reported. Read also: Amazon hikes price of ‘music’ streaming service for Prime members; check new rates

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