Morgan Stanley sees Sensex at 70,000 level by December 2022

Indian stock market’s outperformance relative to emerging markets (EMs) is likely to pause in 2022, said analysts at Morgan Stanley in a recent note, but expects the Sensex to hit the 70,000 mark by 2022-end - up around 17 per cent from the current levels. The research and brokerage house had recently downgraded India to equal-weight in their global emerging markets (GEMs) country portfolio. The market, Morgan Stanley feels, could cool off as it absorbs the gains of the preceding 18 months.

“India’s strong growth and macro stability are driving its re-rating, albeit for now we think the outperformance could