Indian households unlikely to stop investing in stocks, says Morgan Stanley

Despite a record rise in trading by retail investors over the past eight years, Indian households remain "dramatically" underweight in the asset class, says Ridham Desai

Concerns over a slowdown in the global economy are unlikely to stop the flow of retail money into Indian stocks as households have vast scope to expand their exposure to equity assets, according to Morgan Stanley.

Despite a record rise in trading by retail investors over the past eight years, Indian households remain “dramatically” underweight in the asset class, with stocks comprising only 5%-6% share of their wealth, said Ridham Desai, managing director at Morgan Stanley India Company Pvt. Ltd. 

Indian households save roughly 20% of gross domestic product, equivalent to about $700 billion a year, he said. Just a