Morgan Stanley has set a new Sensex target of 89000 by June 2026 considering Indias growth and earnings potential and a stable policy framework. In an optimistic bull-case scenario where the firm assigns a 30% probability the Sensex could reach the 100000 mark. The global brokerage showed confidence in India’s long-term growth trajectory. Our revised Sensex target of 89000 for June 2026 represents an 8% upside and incorporates updated earnings estimates rolling forward from our previous target of 82000 by December 2025 said Ridham Desai Morgan Stanleys equity strategist reported Economic Times. Morgan Stanley on Wednesday modestly upgraded its forecast for the Indian economy to 6.2 per cent year-on-year for financial year 2026 up from 6.1 per cent and 6.5 per cent for FY 2027 up from 6.3 per cent. We upgrade our growth forecasts modestly to 6.2% YoY (vs. 6.1%) for F2026 and 6.5% YoY (vs. 6.3%) for F2027 in view of the de-escalation of US-China trade tensions which improves the outlook for external demand at the margin said the report. The financial services firm cited the internal economic forces behind the upward revision of Indias GDP. It says that domestic demand will remain the primary engine of growth especially at a time when global uncertainties persist. Domestic demand trends will be the key driver of Indias growth momentum amid lingering uncertainty on the external front Morgan Stanley added. The financial services firm further added that policy support from the government is likely to continue and it will boost domestic demand and growth. Policy support is likely to continue through easier monetary policy while fiscal policy prioritises capex. Macro stability is expected to be in the comfort zone with robust buffers the report added. The broking firm further added that within domestic demand consumption recovery will become more broad-based with urban demand improving and rural consumption levels already robust. On the investment front it added that public and household capex are driving growth while the anticipation is that private corporate capex will recover gradually. Within domestic demand we expect consumption recovery to become more broad-based with urban demand improving and rural consumption levels already robust. Within investments we see public and household capex driving growth while we expect private corporate capex to recover gradually said the Morgan Stanley report (With Inputs From ANI) (Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)