Sensex seen 32,500 by Dec 2015; like banks: Morgan Stanley

Moneycontrol Bureau

Brokerage house Morgan Stanley says it expects the Sensex to hit 32,500 by end of December 2015.

“Indian equities are benefiting from the start of a new growth cycle, a benign global environment resulting in a positive shift in terms of trade and reforms, which can lift India's potential growth rate,” the brokerage said in a note to clients.

“From a portfolio perspective we back cyclical stocks and sectors that could benefit from policy changes,” the note said, while sounding a cautious note on high beta stocks.

Morgan Stanley is overweight on oil & gas, auto, banks and IT sectors. It is underweight on FMCG, healthcare, capital goods, cement and power utilities.

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