Morgan Stanley Sees Market Re-Rating Opportunities in Indian Equities Amid Strong Policy Support and Emerging Growth Cycle.

Morgan Stanley expects Indian equities to experience a sustained market re-rating due to weak past returns, inexpensive valuations, strong policy support, and subdued foreign investor positioning. The brokerage sees a sharp turnaround in earnings growth, driven by a coordinated reflation push from the RBI and government. Morgan Stanley has a base-case BSE Sensex target of 95,000 through December 2026, with a trailing P/E multiple of 23.5 times, modestly above its 25-year average.