Mint Quick Edit | Will corporate earnings justify bright forecasts for Indian stock market indices?

The latest is Morgan Stanley, which foresees the BSE Sensex climbing to 107,000 by December 2026 in a bull case and 95,000 in its base case; the latter implies that in an expected scenario under normal conditions, the index could rise by 12% from its Tuesday close of 84,673.

Earlier, Goldman Sachs had turned overweight on Indian markets and set a 2026-end target of 29,000 for the Nifty (it closed at 25,910). Indeed, the backdrop seems favourable. A lacklustre year for equities has allowed earnings to catch up with prices, making them look less expensive than they did a year ago.

There might be patches of froth still, but given India’s strong economic growth and policy moves in its support, Indian shares are starting to regain appeal from a value perspective. As for sentiment, indices rising above last September’s peaks may be a sign to watch out for.

Better trade ties with the US could boost buying too. But for sustainable support, investors can only count on an earnings pick-up. Will India Inc deliver?