MUMBAI: Despite recent uncertainties related to global tariff wars and the sharp slide in the two leading Indian indices, global financial major Morgan Stanley has not changed its year-end sensex target of 105,000 points by Dec 2025. Calling India ‘A stock pickers’ market’, Morgan Stanley’s strategists and economists, led by Ridham Desai, said that India’s relative earnings growth is turning up based even on the more conservative consensus forecasts.
In another report by another team from the same financial house, analysts said that India’s low share in global manufacturing exports but a high share in services exports could be its saving grace in a world that’s witnessing trade wars.
Desai’s team said valuations of Indian stocks “are the most attractive since Covid pandemic. The market has ignored RBI’s policy pivot, and a strong Budget from govt, among other positive developments since early Feb. Our sentiment indicator is in strong buy territory.”
Risks for India could originate abroad, like trade and tariff policies of US, strength of the dollar etc. Analysts at Morgan Stanley acknowledged that like a lot of investors, they were also caught off-guard by India’s slowdown in economic activity.