Business Desk, AnyTV, New Delhi
Published by: Deepak Chaturvedi
Updated Fri, 11 Mar 2022 12:32 PM IST
Summary
American brokerage company Morgan Stanley has predicted the BSE Sensex to cross 75 thousand in the coming nine months. It has been said in the report that due to non-increasing cases of corona and the possibility of reduction in crude oil prices in the coming days, the BSE index can take a long jump.
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Expansion
Sensex will take a long jump
Talking about the present, the Sensex is currently trading at the level of 55-56 thousand. But it will give a long jump in the coming days and can touch the figure of 75 thousand. Morgan Stanley’s report says that if some things continue in the right direction, then by December, the Sensex can touch the 75,000 mark. It is worth noting that earlier the company had estimated it to reach 70 thousand, which has now been changed to 75 thousand.
Because of these expectations
In the report, the possibility of a rise in the Sensex has been expressed due to some factors. It added that India’s inclusion in global bond indices would bring in around $20 billion in 12 months. Apart from this, if the boom that has come in crude oil falls at the same rate, then the market will benefit. Apart from this, the decrease in the cases of infection due to the acceleration in COVID-19 vaccination should remain the same, if it does not increase, the investor’s sentiments will be strengthened. Apart from this, it will also be beneficial if RBI keeps policy rates stable for a long time.
GDP growth forecast downgraded
However, the impact of the Russo-Ukraine war has been visible on the Indian economy recovering from Corona. Due to this, the biggest concern has come to the fore due to the rise in inflation. For India, which imports 85 percent of its oil, the rise in its prices is a big challenge. Due to this, it is possible to increase the prices of petrol and diesel in the country and if the prices of fuel increase, then there is a danger of increasing retail inflation. In view of this, Morgan Stanley has also reduced India’s growth forecast for the financial year 2022-23 to 7.9 percent.
Higher risk of inflation
Along with this, analysts have also raised the inflation forecast in India to 6 per cent, which is the upper level of the Reserve Bank of India’s satisfactory range. The company said the current geopolitical tensions are exacerbating external risks and also raising fears of an inflation-induced slowdown for the economy.