Morgan Stanley cuts Sensex target 3 ppt

Morgan Stanley has cut its year-end target for India8217;s benchmark index Sensex by 3 percentage points to 18,850 citing weak earnings growth.

We think broad market earnings growth may have troughed,the Wall Street bank said in a note. Morgan Stanley forecasts December-2012 target for the index at 22,750.

The Dec-12 target implies P/E multiples of 18x and 16x on F2012 and F2013 earnings,respectively,it said. At 10.25 a.m.,the index was down 1.46 percent to 16,597.14 points.