New Delhi— Global brokerage firm Morgan Stanley has reaffirmed its bullish stance on Indian equities, calling it an opportune moment to invest in the country’s long-term structural growth, even amid global uncertainty.
In a recent note, the firm emphasized that while short-term market volatility may persist, India’s strong domestic fundamentals make it a compelling investment destination. “The long-term reward outweighs short-term noise,” Morgan Stanley said, urging investors to remain focused on India’s internal growth drivers and selectively increase exposure during market pullbacks.
Despite a challenging global backdrop—marked by slowing growth, shifting central bank policies, and geopolitical tensions—India is expected to outperform, thanks to its relative insulation from global headwinds.
The brokerage cited India’s combination of macroeconomic stability, resilient earnings potential, and steady domestic demand as key reasons the country could act as a safe haven in a global bear market.
Morgan Stanley favors sectors driven by domestic consumption and investment, maintaining an overweight position in financials, consumer discretionary, and industrials. The firm expects these segments to benefit from improving credit growth, renewed private capital expenditure, and rising consumer demand.
In a separate report released last month, Morgan Stanley identified India as one of its preferred equity markets globally, alongside Singapore, Chile, the UAE, and Japan, due to resilient macro conditions and solid financial sector performance.
Key domestic catalysts cited by the firm include accommodative policy from the Reserve Bank of India, potential GST rate reductions, and a possible trade agreement with the United States. Additionally, easing food and energy prices are expected to help keep inflation in check.
Morgan Stanley concluded that the window to participate in India’s long-term growth story is open now—offering patient investors an attractive risk-reward opportunity. (Source: IANS)
