New Delhi, Aug. 4 -- Indian equities are poised for a structural re-rating, with the BSE Sensex projected to scale new highs over the next 12 months, according to a recent strategy note by Morgan Stanley. Equity strategists Ridham Desai and Nayant Parekh have set Sensex target of 89,000 for June 2026, implying a 10% upside from current levels.

This strong case for re-rating and the bullish forecast rests on fundamental shifts taking place in the Indian economy - ranging from a robust demographic profile to rising macroeconomic stability and a more predictable policy environment.

Morgan Stanley argues that India is likely to gain share in global output, backed by core strengths like its demographic dividend, a functioning democracy, macr...