Stock market investors rejoice: Sensex poised for 26% upsurge, targets 107,000 by Dec 2026

Mumbai (The Uttam Hindu): The Indian equity market is expected to see a strong recovery over the next year, with the Sensex expected to reach 107,000 by December 2026, a 26 percent increase from its current level, according to a report. This increase will enable investors to earn more money.

Global brokerage firm Morgan Stanley said in a report that the uptrend will be supported by policy reforms undertaken by the Indian government and a pick-up in economic activity. The report said the slowdown is over and earnings will strengthen in the coming months.

According to the brokerage firm, India's long-term growth remains strong due to government policy decisions, which are improving domestic factors. However, risks to the economy remain from external factors. The report further stated that India's valuations are also supporting strong growth in the coming months, and foreign portfolio investors hold the lowest stake in the Indian market ever.

In a bull-case scenario, the BSE Sensex could reach 107,000 by December 2026, a 26 percent increase from its current level. In a base-case scenario, the Sensex could reach 95,000, a 13 percent increase from its current level. Morgan Stanley previously projected the Sensex would reach 100,000 by June 2026.

Analysts believe that the Indian stock market's valuation has significantly improved, reaching its lowest level in October 2025. They said positive growth can be expected in the coming months, which will support a market re-rating. The Sensex is currently trading around 84,700, down about 800 points from its all-time high of 85,478.25.