Morgan Stanley on Sensex: There is good news for those who invest in the stock market. Brokerage firm Morgan Stanley looks very positive on the outlook for the Indian market. According to Morgan Stanley report, by December this year, the Sensex can break all its records and reach 61000 level. According to the report, the way the domestic stock market has performed amid the second wave of Corona, it is possible to see positive returns in the second half of 2021. According to the brokerage, in the Bullish case, it may reach 61,000 mark at the end of December.
The stock market will gain momentum again
Brokerage firm Morgan Stanley says the stock market will regain momentum in the second half of 2021. At present, the Sensex is trading at the level of 50 thousand. This means that in the next six months it will increase by about 20 percent. According to the report of Morgan Stanley, by the end of this year, the Sensex will cross the figure of 55 thousand. However, if all goes well, it can also touch the level of 61 thousand in the Bullish case. India’s performance in the emerging market will be the best due to better results and good valuation of companies.
Weakness may come in June quarter results
The brokerage report says that there may be a slight decline in the results of companies in the April-June quarter. This will be due to the second wave of Corona. However, markets and investors are now looking at the long-term perspective. The second wave of Corona will not have much effect on the market because the market has now understood well that the current decline is temporary and will accelerate in the coming days. The report says that the market will be watching the macro economic fundamentals and earning momentum. The market will no longer favor liquidity and valuation.
Where to invest money, who should stay away
The brokerage firm says that investors should focus on mid-cap shares in their portfolios instead of large-caps. However, investors who are small-cap stocks should focus on large-cap stocks. Apart from this, investors should invest in consumer, industrial, financial and utilities stocks. At the same time, focus on consumer disretionaries, financials, utilities and industrial shares. Apart from this, they have been advised to exit the shares of IT, pharma, telecom and energy companies. Regarding financial stocks, he says that the Reserve Bank has not cut rates in a long time. In such a situation, there is a possibility of a rate cut in the coming days.
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