Indian stock Market may witness rise in volatility in the near-term due to these 7 reasons as per Morgan Stanley

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1- Elections likely in April/ May 2024- The general elections are scheduled to be held in a few months from now and remain watched for even though outcome in recent state elections has lead investors to believe that the ruling party may return to power. Also Read-Tata Steel announces Jan 19 as record date to allot shares to TCIL shareholders under scheme of amalgamation 2- The cues from US stock and bond markets- the highlighted point by Morgan Stanley remains important as markets have started factoring rate cuts by March and cues on the same will be watched for by the global markets and Indian markets.

3-oil prices – while India remains less affected than in the past, further rise is oil prices will present headwinds said analysts at Morgan Stanley. 4) Earnings – Analysts at Morgan Stanley said that their estimates are ahead of the consensus.

India remains among the top picks of Morgan Stanley. The India fundamentals are underscored by strong macro stability as a result of improving terms of trade, flexible inflation targeting and stable non-portfolio foreign flows, earnings growth of about 20% annually over the next three to four years led by an emerging private capex cycle, re-leveraging of corporate balance sheets and unfolding of a structural rise in discretionary consumption and a reliable source of domestic risk capital, as per analysts at Morgan Stanley.

These factors as per them have reduced both correlations and volatility of Indian stocks relative to emerging markets. 5) Monetary policy – Analysts at Morgan Stanley said that base case for India’s monetary policy is a status quo but inflation and Federal moves are key and monetary policy; 6) Bond flows could start affecting the BoP (balance of payment)