{"id":2664,"date":"2026-06-02T23:19:38","date_gmt":"2026-06-02T17:49:38","guid":{"rendered":"https:\/\/newsaxis.com\/?p=2664"},"modified":"2026-06-02T23:19:38","modified_gmt":"2026-06-02T17:49:38","slug":"indian-stock-market-poised-for-strong-growth-ahead-morgan-stanley","status":"publish","type":"post","link":"https:\/\/newsaxis.com\/?p=2664","title":{"rendered":"Indian stock market poised for strong growth ahead: Morgan Stanley"},"content":{"rendered":"\n<figure class=\"wp-block-gallery has-nested-images columns-default is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"273\" height=\"400\" data-id=\"2666\" src=\"https:\/\/newsaxis.com\/wp-content\/uploads\/2026\/06\/sensex-1-1.jpg\" alt=\"\" class=\"wp-image-2666\" srcset=\"https:\/\/newsaxis.com\/wp-content\/uploads\/2026\/06\/sensex-1-1.jpg 273w, https:\/\/newsaxis.com\/wp-content\/uploads\/2026\/06\/sensex-1-1-205x300.jpg 205w\" sizes=\"auto, (max-width: 273px) 100vw, 273px\" \/><\/figure>\n<\/figure>\n\n\n\n<p>New Delhi, Indian equities are poised for a strong growth phase over the coming years despite recent underperformance against emerging markets, according to a report by Morgan Stanley, which said improving earnings growth, rising investments and supportive macroeconomic conditions continue to strengthen the long-term outlook for the domestic stock market.<\/p>\n\n\n\n<p>In a strategy note, Morgan Stanley analysts Ridham Desai and Nayant Parekh said Indian equities have delivered their weakest trailing 12-month relative performance against emerging market peers on record.<\/p>\n\n\n\n<p>However, the brokerage believes the market\u2019s underlying fundamentals remain robust and could support strong compounding returns through the remainder of the decade.<\/p>\n\n\n\n<p>The report said the absence of a direct artificial intelligence-linked market theme has remained one of the biggest challenges for Indian equities at a time when global capital flows are increasingly favouring AI infrastructure, semiconductor and technology-heavy markets.<\/p>\n\n\n\n<p>\u201cThe lack of a direct AI play seems to be the most persistent challenge to the equity market,\u201d the analysts wrote.<\/p>\n\n\n\n<p>Morgan Stanley also flagged concerns over the potential disruption AI could create for India\u2019s IT outsourcing industry, which remains closely linked to global technology spending trends.<\/p>\n\n\n\n<p>However, the brokerage added that India could eventually emerge as a significant beneficiary of AI-driven productivity gains because of its relatively low labour productivity base.<\/p>\n\n\n\n<p>The report said Indian IT services firms could become \u201cthe dark horse\u201d as global companies increasingly rely on them to build AI applications and solutions.<\/p>\n\n\n\n<p>Despite the weak relative performance of Indian equities, Morgan Stanley highlighted several positive indicators that are beginning to emerge.<\/p>\n\n\n\n<p>The brokerage noted that 12-month rolling corporate buybacks are nearing record highs and could soon cross nearly $10 billion on a trailing basis, the report said.<\/p>\n\n\n\n<p>Valuations have also become more reasonable. MSCI India is currently trading at a price-to-book multiple of 3.4 times, which Morgan Stanley said historically corresponds with relatively predictable 10-year forward annual returns of around 11 per cent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Delhi, Indian equities are poised for a strong growth phase over the coming years despite recent underperformance against emerging markets, according to a report by Morgan Stanley, which said [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2666,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2664","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","has_thumb"],"_links":{"self":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts\/2664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2664"}],"version-history":[{"count":2,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts\/2664\/revisions"}],"predecessor-version":[{"id":2667,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/posts\/2664\/revisions\/2667"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=\/wp\/v2\/media\/2666"}],"wp:attachment":[{"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsaxis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}