Morgan Stanley pegs FY14 GDP at 6%; Sensex at 23K by Dec
Morgan Stanley pegs the Sensex target at 23,000 by December. Bullish on India, it said the economy will grow at 6 percent in the current fiscal.
June 05, 2013 / 10:14 IST
Global brokerage Morgan Stanley on Tuesday said the economy has come out of the trough and will grow at 6 percent in the current fiscal. Sounding bullish on the stock markets, it pegged the Sensex target at 23,000 by December.
"We are confident that the economy has come out of the furrow, though the recovery will be gradual beginning the second half, and will close the fiscal at 6 per cent," Morgan Stanley Asia Pacific economist Chetan Ahya told reporters at the 15th MS India summit here. He has based his optimism on the recovery in exports which have been rising since January, apart from the election-related spends that will help drive consumption. He also pointed to the positive vibes since September last, which could help revive investments. He said while exports constitute 20 per cent of the GDP, consumption chips in with a high 55 percent, hence the optimism of a gradual recovery. It can be noted that the government has pegged 6.1-6.7 percent growth this fiscal, while the RBI has pegged it at a low 5.7 percent, and many private agencies have projected it between 5.6 and 6 per cent. Last fiscal, the economy hit a decadal low of 5.025 percent. On the market, which is trading at only 15 times the PE, the brokerage said, it is bullish on the Sensex, which will close the calendar at 23,000 points. "We see the Sensex sniffing at 23,000 by December and we are bullish on cyclicals and a bit averse to defensives like consumer staples. We are also overweight on financial sector scrips such as private banks and the entire energy sector as the government has let the market realize the prices of petrol and diesel," Morgan Stanley India managing director Ridham Desai told reporters. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
