Industry Newsemerging marketsequitiesfinancialsmorgan stanley
Morgan Stanley Forecasts India Earnings Outperform Emerging Markets
7.2
Jonathan Garner of Morgan Stanley says India is entering a cyclical earnings recovery that will drive mid- to high‑teens earnings growth for the Sensex over the next two years. He cites narrowed valuation premiums (about 18× forward versus EM ~13×), Reserve Bank easing, capex revival and underweight foreign funds as factors that could reverse flows into Indian equities.
Key Points
- 1Project mid- to high-teens earnings growth for Sensex over the next two years.
- 2Note valuation gap compression: India ~18x forward versus EM ~13x, improving relative value.
- 3Advise overweight financials, industrials, consumer discretionary; caution on IT services amid AI uncertainty.
Scoring Rationale
Official Morgan Stanley outlook provides actionable sector guidance, but relevance is limited outside macro equity investors.
Sources
Public references used for this report.
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