Sensex to hit record high in 2013: Morgan Stanley

Mon Sep 17, 2012 9:48pm IST

People walk past a bronze replica of a bull at the Bombay Stock Exchange (BSE) building in Mumbai November 3, 2008. REUTERS/Punit Paranjpe/Files

People walk past a bronze replica of a bull at the Bombay Stock Exchange (BSE) building in Mumbai November 3, 2008.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

Stocks

   

Reuters Market Eye - Morgan Stanley sets a new target for the BSE Sensex at 23,069 points by the end of December 2013, implying an index trading at 14.9 times estimated 2014 earnings.

The target would surpass the index's record high of 21,206.77 points hit on January 10, 2008.

"Conditions for a new bull market are getting slowly satisfied. The yield curve has stopped flattening, liquidity is improving, valuations appear supportive and profit margin expansion is a growing possibility in the coming months," the investment bank says in a note dated on Monday.

Morgan Stanley expects domestic earnings growth of 10 percent in fiscal 2013 and of 19 percent in fiscal 2014.

Morgan Stanley says cyclicals are "ultra cheap," and prefers "quality" cyclicals over defensives.

As a result, the investment bank goes "underweight" consumer staples in its model portfolio, while raising energy and materials to "overweight" and taking industrials to "neutral."

Morgan Staley also cuts technology exposure in its portfolio by 100 bps.

FILED UNDER:

Reuters Showcase

Markets Weekahead

Markets Weekahead

Focus on sectors which will build India: Ambareesh Baliga.  Full Article 

FMC-SEBI Merger

FMC-SEBI Merger

Regulatory shakeup could revive commodities markets   Full Article 

Tax Incentives

Tax Incentives

Budget woos foreign investors  Full Article 

Excise Duty

Excise Duty

Cigarette makers fall after budget hikes excise duty  Full Article 

Welcoming the Budget

Welcoming the Budget

India Inc cheers corporate tax cut, simpler rules  Full Article 

Gold Price

Gold Price

Gold prices to rise after budget keeps import duty high  Full Article 

Fuel Prices

Fuel Prices

IOC to raise diesel, petrol prices from Sunday  Full Article 

Moody's on Budget

Moody's on Budget

Budget "credit neutral" from a ratings perspective - Moody's   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage