Archive · 18 Nov 2025
Indian Markets Rally; Morgan Stanley Bullish on India
India's stock market is doing great, with some important stocks reaching new highs.
A big investment company, Morgan Stanley, thinks India will do well next year.
They like India because it has some good signs, like fast-growing companies and not depending too much on faraway places like the United States.
They also think the price of Indian stocks is just right for how well the companies are doing.
Morgan Stanley picked some strong Indian companies like Bajaj Finance, ICICI Bank, and Reliance Industries as examples of what makes India special.
Indian markets extend rally, hitting record highs
Morgan Stanley maintains 'Overweight' rating on India for 2026
India's resilience attributed to improving indicators and steady domestic demand
India's stock market valuation considered fair relative to profitability
Bajaj Finance, ICICI Bank, and Reliance Industries among Morgan Stanley's focus stocks
- Who
- Indian equity market, Morgan Stanley, investors, Bajaj Finance, ICICI Bank, Reliance Industries
- What
- Indian markets extended rally; Morgan Stanley maintained 'Overweight' stance on India
- When
- First trading day of the week, referencing outlook for 2026
- Where
- India, Asia Pacific ex-Japan, Global Emerging Markets
- Why
- India's domestic indicators are stable, with early improvements in high-frequency indicators, lower US revenue dependence, and steady domestic demand providing resilience against external shocks and supporting earnings
Morgan Stanley's Bullish Stance on India
Emerging Markets Concerns
Economic Outlook
Morgan Stanley's Bullish Stance on India
Morgan Stanley is Overweight on India due to improving high-frequency indicators, lower dependence on the US for revenue, and steady domestic demand supporting earnings.
Emerging Markets Concerns
Emerging Markets as a whole face a cautious outlook with potential slowdown in 2026 due to a strong US dollar and tight financial conditions.
Valuation
Morgan Stanley's Bullish Stance on India
India's valuation is considered in line with its profitability compared to other regional markets, justifying its premium.
Emerging Markets Concerns
While not undervalued, India's valuation is not seen as excessive, implying a balanced market compared to potential valuation strain in peer markets.
Vulnerability to US Economic Slowdown
Morgan Stanley's Bullish Stance on India
India has lower revenue exposure to the United States and moderate beta, placing it in a lower-risk category if the US economy weakens.
Emerging Markets Concerns
Markets like Taiwan, Korea, and Japan have higher revenue dependence on the United States and are thus more exposed to a potential US economic slowdown.
- Morgan Stanley Stance
- Overweight on India with a 75 basis point active stance
- India's EM Exposure
- Lower revenue dependence on the United States compared to Taiwan, Korea, and Japan
- Valuation Metric
- Price-to-book versus trailing return on equity shows India aligned with profitability
- Indian Companies in Focus
- Bajaj Finance, ICICI Bank, Reliance Industries
- Key Themes for Indian Companies
- Financials, Future of Energy, AI, Tech Diffusion, Longevity
- Nifty Close
- 26,013
- Sensex Close
- 84,950
- IIFL Finance Support
- ₹540-₹530
- IIFL Finance Resistance
- ₹600
Sources
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