Indian mkt likely to outperform global peers: Morgan Stanley

MUMBAI: The Indian market is likely to outperform its global peers and the benchmark Sensex could hit the 19,000-level by the end of this year, financial services major Morgan Stanley said in a report.

"A global market sell-off remains a key risk to absolute performance in Indian equities though we think Indian equities will likely outperform," the Indian strategy report of Morgan Stanley said.

There is 40 per cent probability of a bull run in which case the BSE Sensex could hit the 19,000 mark by the end of 2009, the report said adding there is only 10 per cent probability of a bear phase in which case the Sensex could tank to 8,600 levels.

The report has predicted the Sensex levels in scenarios like bull and bear market and what it calls a base case.

"The market performance depends largely on the government action. In the context of the quality of the new government's mandate, the optimism shown by the market may not be misplaced," it said.

However, the bull case for the market assumes factors like recovery in global growth, strong policy action from the government, lower non-performing assets among others.

(Source : ET)