Morgan Stanley upgrades India to 'standout overweight' market, cites economic, earnings growth
PTI. "India remains standout overweight. We increase our overweight stance on Indian equities and as our most-preferred emerging market," PTI quoted a brokerage note as saying on Friday.
Apart from this, Morgan Stanley said that the 'dream' run of domestic flows continues and multipolar world dynamics are driving both FDI as well as portfolio flows towards the country, adding, that the domestic equities top the brokerage's global equity investment score with an overall score of 68. Singapore though is at the second highest score is a distant 54, Greece at 47, Mexico at 43, and Poland at 38, making the top five markets for the company this year. ALSO READ: Morgan Stanley warns against buying the dip in Chinese stocks: Report From early 2021 until October 2022, India has been structurally outperforming the MSCI EM index by 45.5 percent (in USD terms.
It said, "We expect outperformance to continue, with India starting to show a material breakout in relative EPS versus EM and having relatively low correlation/revenue from both the US and China." The brokerage said that the recent high-frequency trends also support our bullish stance with inflation concerns abating and the trade balance improving. It added that other than India only Japan has an overweight stance in Asia. "We remain structurally bullish on India with the key thesis of our market upgrade intact.
Read more on livemint.com
