New Delhi, May 13 -- Despite the prevailing risks from a slowdown in earnings and oil price shock, which have prompted other global brokerages to turn bearish on the Indian stock market, Morgan Stanley remains among the few bulls as it projects the BSE barometer Sensex reaching the 89,000 level in the next 12 months or so.

The brokerage's Sensex target signals an upside potential of 15% through June 2027.

"This level suggests that the Sensex would command a trailing P/E multiple of 23.5x, ahead of the 25-year average of 22x. The premium over the historical average reflects greater confidence in the medium-term growth cycle in India, lower beta, a higher terminal growth rate, and a predictable policy environment," said Morgan Stanley's e...