Sensex target at 70000 with budget being catalyst, says Morgan Stanley’s Jonathan Garner

Morgan Stanley’s Sensex target is 70,000 with the union budget being a possible catalyst, Jonathan Garner, chief-Asia and emerging market equity strategist, told CNBC-TV18.

He said, “We think the market needs to pause and we are anticipating, in the second half, moving higher towards a Sensex target of 70,000 is possible; the budget may be a catalyst for that but the first half is going to be relatively difficult for all markets.”

Garner added that India had a very strong year relative to other emerging markets and had a much improved sovereign balance sheet aiding it

Talking about union budget, he said, “What we are looking for in the budget is what has been the pattern in recent years in India, which is a business-friendly kind of budget particularly where government spending is focused on infrastructure which helps improve the supply side of the economy rather than current spending.”

For the entire interview, watch the video