HomeEconomic IndicatorMorgan Stanley boosts India rating to "exceptional overweight" due to robust economic...

Morgan Stanley boosts India rating to “exceptional overweight” due to robust economic growth.

India Upgraded by Morgan Stanley to “Standout Overweight” Amid Strong Economic Growth

India’s Economic Strength Recognized by Morgan Stanley

In a move that highlights India’s growing economic prowess, Morgan Stanley, a prominent Wall Street firm, has upgraded the country to “standout overweight.” This decision comes as a testament to India’s robust macro-stability setup and its adoption of the China Plus One strategy, which focuses on bolstering its manufacturing sector.

Morgan Stanley: India’s Manufacturing Sector Drives Economic Growth

Morgan Stanley’s upgrade reflects the increasing attention India’s economic growth has garnered from international economists and brokerages. With its flourishing manufacturing sector leading the way, India has emerged as Morgan Stanley’s top pick among emerging markets in the evolving dynamics of a multipolar world.

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Surge in Capital Inflows and Equity Investments

This upgrade has sparked a surge in domestic capital inflows, stimulating both Foreign Direct Investment (FDI) and portfolio investments. Additionally, Indian equities have secured the top spot in Morgan Stanley’s global equity investment ranking, surpassing countries such as Singapore, Greece, Mexico, and Poland with an impressive score of 68.

India’s Strong Performance and Potential for Growth

From 2021 to October 2022, India has outperformed the index by 45.5% in USD terms. This remarkable performance showcases India’s strong position within the global economy and its potential for continued growth.

India’s Economic Trajectory and Growth Forecast

Morgan Stanley predicts that India’s relative Earnings Per Share (EPS) will significantly outperform other emerging markets. This forecast is based on India’s low correlation and revenue dependence on the US and China. The firm’s assessment suggests that India’s economic trajectory is on an upward trend, supported by its robust macro-stability setup, which can withstand a higher real rate environment.

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Embracing India’s Economic Momentum

As India continues to strengthen its economic foundations and attract global attention, the future looks promising. With Morgan Stanley’s upgrade and positive growth forecasts, India’s journey towards becoming a global economic powerhouse is well underway.

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