2 weeks Ago By Divya Prata
While weak global markets could be a hindrance in terms of total returns, and global bull markets are a ground for underperformance, India's lower volatility relative to its global peers is a key reason why Morgan Stanley India's Managing Director, Ridham Desai, remains bullish on the country among emerging markets.According to Desai, India's strong macro fundamentals are doing the heavy lifting. A cocktail of low inflation volatility, strong earnings growth, domestic risk capital, combined with a dovish RBI, rupee's steadier valuation amid current global market sentiment and falling oil prices aid Morgan Stanley's positive sentiment, stated the note.
Catalysts And Risks At PlayTrade agreements with the US, goods and service taxes and other domestic stimuli, and incoming growth data are all helpful for market sentiment, the brokerage said. But Morgan Stanley points to a potential global recession in the near term as a risk indicator.Indian markets have, since the announcement of Trump's steep levies, managed to reverse losses to become the first market to get out of the tariff-induced rout.
The NSE Nifty 50 has gained over 3% since the tariffs were announced.Stocks To Watch Today: Tata Steel, JSW Steel, SAIL, HUL, Vedanta, Tata PowerLong term, the brokerage flagged judicial constraints, the AI boom, state-level fiscal challenges, and slipping productivity in the farming sector as potential challenges.So, Stock Up On What?As the state (the world, actually) grapples with Washington's tariff induced turmoil, Morgan Stanley's stance is clear: domestic cyclicals for the win, over external facing and defensive sectors.
The brokerage also stays overweight on financials, consumer discretionary stocks as well as industrials. They have an underweight outlook on energy, materials, utilities, and healthcare."This is a stock pickers' market, in contrast to one driven by top-down or macro factors since the Covid pandemic," said Desai.
The brokerage remains capitalisation agnostic, and is thereby spread over an array of largecaps, midcaps, and smallcaps, he added.DMart, Trent, HUL Among UBS' Top Stock Picks As It Bets On Consumer Sector Rebound. Read more on Markets by NDTV Profit.
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