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

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

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

Also, the retraction of oil prices from the current prices will play a crucial role in the rise of Sensex in the coming months. Morgan Stanley noted that in the best-case scenario, Sensex could touch 62,000 by December-end. The chances of such an event are 50%.

Morgan Stanley also assumes that the ongoing Ukraine-Russia tension ends in weeks. It also predicts that future Covid-19 waves will not result in a major restriction of economic activity and a recovery in growth as per its forecasts. 

The investment bank also hopes in the best-case scenario that the government policy will remain supportive. It also expects from the RBI that the central bank undertakes a calibrated exit. In such a case, Sensex could witness a 22% compound growth annually over FY2022-24.

On Wednesday, Sensex plummeted 566 points to settle below the 60,000-level. It was dragged down by heavy selling in banking and IT stocks amid weak global trends, according to a report by PTI. Also Read: Lemon selling at Rs 400 per kg in Jaipur! Lemon water becomes an elite 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. Also Read: Amazon increases price of ‘Music’ streaming service for Prime members; check new rates