The Indian equity market may see a strong recovery in the next one year and the Sensex may reach the level of 1,07,000 by December 2026, which is 26 percent higher than the current level. This information was given in a report.

In the report of global brokerage firm Morgan Stanley, it was said that this growth will be supported by the policy reforms being done by the Indian government and the increase in economic activities. The report said that the phase of slowdown is over and the coming months will see strength in earnings.

India’s long-term growth rate strong

According to the brokerage firm, India’s long-term growth rate remains strong due to government policy decisions, which are improving domestic factors. However, the economy remains at risk from external factors.
The report further said that India’s valuations also support strong growth in the coming months and foreign portfolio investors have an all-time low stake in the Indian market.

Sensex will reach 1.07 lakh

In the bull-case scenario, the BSE Sensex could reach 1,07,000 by December 2026, which is 26 percent higher than the current level. At the same time, in the base-case scenario, the Sensex can touch the level of 95,000, which is about 13 percent more than the current level.
Earlier, Morgan Stanley had said that the Sensex will touch the figure of one lakh by June 2026. Analysts believe that the valuation of the Indian stock market has improved significantly and will reach its lowest level in October 2025.
He said positive growth can be expected in the coming months, which will support the re-rating of the market. The Sensex is currently trading around 800 points higher at 84,700 from its all-time high of 85,478.25.