Bull Run To Continue, Sensex Can Hit 82,000 In A Year: Morgan Stanley

India's equity market is seeing the longest and the strongest bull market ever, according to Morgan Stanley, which expects the S&P BSE Sensex to hit the 82,000 mark by June 2025. This comes as the brokerage said that share prices have yet to bake in several positives on the macroeconomic front.

The most important aspect of the Bharatiya Janata Party-led National Democratic Alliance retaining its majority is policy predictability, which is something equities tend to thrive on. The election outcome is likely to usher in more structural reforms and reinforce their forecast of 20% annual earnings growth over the next five years, the brokerage said in a note on Wednesday.

Morgan Stanley said that while the bull market in the country is ageing, it is still young in terms of returns. "We believe this is set to be India's longest and strongest bull market ever. Stay invested."

While there are positives, the brokerage also said that there are plenty of risks for India's equity market like healthcare, education, and skills training.

The brokerage prefers cyclical stocks over the defensive ones and large caps over small and mid-caps. Morgan Stanley is overweight financials, technology, consumer discretionary and industrials while being underweight in other sectors.

The macro trade could peak in the coming weeks and from a five-year perspective, the brokerage likes several themes in consumer, energy, financials, and industrials.