Sensex Might Hit 75,000 By December 2022: Report

Share Market India: Morgan Stanley said that India's benchmark index Sensex may hit 75,000 levels by the end of 2022 if the bull run continues. However, it has lowered the earlier prediction by 5,000 points.

New Delhi: According to a latest report by Morgan Stanley, India’s benchmark index Sensex may hit 75,000 levels by the end of 2022 if the bull run continues. However, it has lowered the earlier prediction by 5,000 points. Also, the base prediction has been reduced to 62,000 from 70,000. However, if the bears take the market, Sensex might hit remain at 50,000.

The firm, according to a report by BloombergQuint, said that the investors should stay cautious and follow the ‘barbell’ strategy for buying stocks. It is also said that the Indian economy has performed well amidst the rising oil prices. It is owed to a strong stock market, high relative rates by the Reserve Bank of India and decreasing intensity of oil in the GDP.

The report also said that further waves of the Covid-19 pandemic will not impact the markets in a major way. It also said that the Russia-Ukraine tensions will also impact the earnings of Indian investors. But if the fallout ends soon, the markets might perform better.

What factors will determine if Sensex will hit 75,000 or not?

According to the report, whether Sensex touches 75,000 or not will depend on these 5 factors:

• No major wave of Covid-19
• Quick fall in global oil prices
• Dovish stance of RBI continues
• Earnings grow at 25 per cent, compounded annually, for the next two years
• Inclusion of India in global bond indices

According to the report, the technology sector will play a major role in India’s growth story. Infosys Ltd. and Tech Mahindra Ltd. have been added to Morgan Stanley’s focus list.