Investing.com -- Morgan Stanley analysts see Indian equities as an attractive buying opportunity despite the broader market downturn, citing improving fundamentals and a shift in domestic policy.
The firm noted that India is emerging from a slow growth phase, with recent developments largely overlooked by markets. It also pointed to a pro-growth budget, a pivot by the Reserve Bank of India (NSE:BOI) toward easing, and a series of tax reforms aimed at boosting foreign direct investment.
“If global cues do not surprise negatively, India should resume its outperformance to EM in the coming months,” the analysts wrote, noting that geopolitical risks are fading, global indicators such as oil prices and the U.S. dollar index are improving, and foreign portfolio investment in Indian debt has turned positive.
Morgan Stanley (NYSE:MS) noted India’s strong macro stability, expected earnings growth, and a reliable domestic capital base as key drivers reducing its exposure to broader emerging market volatility.