In December 2024, the brokerage had projected the Sensex at 93,000 by December 2025 as its base case, representing a 14% upside and in a bullish scenario the Sensex was to test 1,05,000, while a bearish outlook placed it at 70,000.
Once the ongoing correction ends, Morgan Stanley expects the domestic markets to likely resume outperformance to emerging markets peers in the coming months. India has strong macro stability with improving terms of trade, declining primary deficit, and falling inflation volatility, the brokerage had said in a February note.
The domestic markets is being perceived as a relative safer haven at a time when tariff-related uncertainty is causing volatility in global share prices. Domestic demand, which is emerging from a brief lull, is expected to support businesses and help withstand a potential global recession better than Asian peers who are saddled with higher tariffs, Desai concluded.