Indian stocks start looking attractive: Morgan Stanley

AMID A SELL-OFF on Dalal Street due to concerns about growth outlook and trade wars, global brokerage firm Morgan Stanley has stated that Indian stocks are now looking attractive, with a stock pickers' market unfolding.

- FE BUREAU

"A likely positive shift in fundamentals is not yet priced in — we expect India to recover lost ground against its peer group through the rest of 2025," Morgan Stanley India equity strategist Ridham Desai said in a note. "We remain ahead of the consensus on earnings. Crucially, India's relative earnings growth is turning positive, even based on the more conservative consensus forecasts," Desai said. He added valuations are the most attractive since the pandemic. The market has ignored the RBI's policy pivot, and a strong Budget from the government, among other positive developments since early February, the brokerage wrote in its note. Morgan Stanley believes India's low-beta nature makes it a resilient market amid the current macro uncertainty in equities,