Morgan Stanley cuts FY23 earnings forecast by 8%; lowers Dec Sensex target

In a bull-case scenario (30 per cent probability), Morgan Stanley expects the Sensex to hit 75,000 by December 2022-end and sees the 30-share index at 45,000 by the year-end in a bear case scenario

Morgan Stanley has cut its forecast for corporate earnings growth for fiscal 2022-23 (FY23) by 8 per cent amid the sharp rise in oil prices, which it said could fuel inflation and cast a shadow on how India Inc performs over the months ahead. All this, it said, will also impact economic growth in FY23. SEE EARNINGS FORECAST TABLE HERE
 
“Indian stocks have held up remarkably well despite the rise in oil prices, possibly due to a combination of a change in macro funding mix to FDI, falling oil intensity in GDP, high real relative policy rates