New Delhi, Oct 3
Morgan Stanley believes investors may be underestimating a pivotal shift in India’s growth cycle, with both earnings and market peaks still ahead.
Reflecting this conviction, the global brokerage firm has realigned its portfolio strategy to favour domestic cyclicals over defensives and export-led sectors.
Under its ‘Gunning for Growth’ theme, Morgan Stanley has turned overweight on financials, consumer discretionary, and industrials, while adopting an underweight stance on energy, materials, utilities, and healthcare.
The international brokerage company emphasised that headwinds from the global slowdown and rich valuations in the second half of 2024 are now reversing, setting the stage for India to deliver stronger relative performance.