Global brokerage firm Morgan Stanley has set the bull case target at 107,000 by December 2026. In its latest strategy outlook report, the global investment bank highlights multiple pathways for the market, but its most optimistic scenario sees the benchmark index surging by nearly 27% from current levels if macroeconomic and policy tailwinds remain favourable.
Morgan Stanley’s analyst, Ridham Desai, claimed: “Following their worst underperformance in three decades, we see Indian equities regaining their mojo in 2026. Policy has pivoted, supporting a strong recovery in , which should take earnings growth out of the mid cycle slowdown experienced over the past 12 months. Relative valuations are consistent with improved forward performance. FPI exposure remains the lightest in history.”
He added that “Indian equities appear set to reverse their worst performance relative to emerging markets in 31 calendar years.”
“Significant initiatives by the government to revive consumption (tax cuts (personal and GST), interest rate cuts, trading restrictions, etc.) and a likely more favourable regulatory regime should help India deliver a double-digit return in 2026,” mentioned Yogesh Aggarwal in an HSBC Securities and Capital Markets report.
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