At 50,000, the Sensex would trade at 16 times its estimated FY21 earnings—which the brokerage projects will be 15 per cent higher than FY20.
“We remain in a bull market that started in March, and even though one should expect corrections along the way, the equity market may have more legs before it tops out. We raise EPS estimates and index target,” said Morgan Stanley equity strategist Ridham Desai and Sheela Rathi in a note.
The brokerage believes a ‘bottom-up’ approach will be more rewarding for investors.
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