Indian stock markets to continue underperforming EM peers: Morgan Stanley

Earlier in November 2022, Morgan Stanley had reiterated its stance on the Indian markets and said that the bull-run remained intact. Back then, they expected the Sensex to hit 80,000 levels by Dec '23

Indian stock markets are likely to continue to underperform emerging market (EM) peers, said analysts at Morgan Stanley led by Ridham Desai, their head of India research and India equity strategist, in a report co-authored with Sheela Rathi and Nayant Parekh. That said, the analysts believe India’s relative fundamentals in terms of earnings growth remains strong.

“We remain underweight India in an EM context given our view on improving conditions for some large EMs such as China, Korea and Taiwan. We believe EMs are benefiting from a relatively more benign world versus 2022, and India’s relative valuations imply that its