Morgan Stanley's latest report indicates a promising future for the Indian stock market, projecting the Sensex index could reach 95,000 by 2026, representing a 24% increase from its current level of 76,631 as of April 9. The firm cites a combination of weak historical performance, attractive valuations, and a recovering earnings cycle as factors behind its bullish stance. The report highlights that the Sensex's trailing performance is the worst in history, and its valuations are at historic lows, particularly in gold terms. Morgan Stanley's base-case scenario anticipates a trailing price-to-earnings (P/E) multiple of 23.5x, slightly above the 25-year average of 22x. This reflects confidence in India's medium-term growth, macroeconomic stability, and a favorable policy environment. In a more optimistic bull case, the Sensex could soar to 107,000, contingent on oil prices remaining below $70 per barrel and an annual earnings growth of 19%. Conversely, a bear case scenario, where oil prices exceed $100, could see the index fall to 76,000. Investors are advised to consult with certified experts before making investment decisions.