HSBC and Morgan Stanley are of the opinion that Indian markets are poised for a bull run, predicting a consensus earnings per share growth of 24% in 2019. Morgan Stanley is expecting the Sensex to scale up to 42,000 levels in 2019, with a bullish scenario of 47,000 and bearish scenario of 33,000. HSBC's target for end 2019 is 40,300.
With the Sensex and Nifty both rising and stocks in key sectors including banking and consumer markets hitting record highs, HSBC AsiaPac said that Indian markets are heading towards a bull run, with consensus earnings per share (EPS) likely to rise by 24% in 2019 YoY.
"The macro backdrop is looking better in 2019 than in 2018. Inflation is low, and our economists are now looking for a rate cut in April. We expect overall GDP (gross domestic product) growth to accelerate," Herald van der Linde, head of equity strategy for Asia Pacific wrote. "The Indian market is underweighted in Asia