Morgan Stanley Revises Sensex Target to 82,000 and Lowers India's FY26 GDP Forecast
| Category | Details |
|---|---|
| Global Brokerage Firm | Morgan Stanley |
| Revised Sensex Target | Downgraded to 82,000 (from 93,000), a 9% upside from current levels. |
| Reason for Downgrade | Fears of a global economic slowdown due to US tariffs. |
| US Tariffs Impact | On April 2, 2025, President Trump imposed new tariffs on 70 trading partners, termed "Liberation Day". India faced a 26% additional tariff, lower than China, Vietnam, and South Korea. |
| GDP Growth Estimate | FY26 GDP growth estimate trimmed to 6.1% (from 6.5%). |
| RBI Projection | Reduced from 6.7% to 6.5% in the April 9 Monetary Policy Committee (MPC) announcement. |
| Other Brokerages | UBS: Cut to 6.0% (from 6.3%); Goldman Sachs: Revised to 6.1%; Citi: 40 bps impact; QuantEco Research: 30 bps impact; HSBC/UBS Securities: Project 20-50 bps drag. |
| Sector-wise Stance | Overweight: Financials, Consumer cyclicals, Industrials; Underweight: Energy, Materials, Utilities, Healthcare. |