New Delhi:
Morgan Stanley’s latest report on Wednesday, April 16 said that India is one of his favorite equity markets. The conditions here are flexible or are sufficiently safe by encouragement. According to Global Brokerage, in the new US administration, the ‘Brave New World’ dynamics on the driving seat in the early stages, in large markets, we maintain our main recommendations of Overweight (OW) on domestic India, domestic Japan, Singapore and UAE.

Why is Morgan Stanley Favorite Market?

Morgan Stanley said, “We update our APX/EM market allocation framework as well as our major 15 APAC/EM market recommendations. In Asia Pacific, our favorite markets remain India and Singapore, while the Philippines has also reached OW due to valuration support.”

Brokerage said, “We remain the most alert on Taiwan and New Zealand, while we reduce the underweight on Korea and take an EW stance on Australia.”

Exports are moderate levels in India and Australia. Also, equity listed from the US also has a medium level of total revenue, mainly focused on healthcare, IT services (India) and industries (Australia).

Singapore, UAE and Japan also included in the list

Brokerage holds a flexible approach to financial income, in which capital ratio and assets quality outlook are in strong positions in most parts of its coverage.

Brokerage said, “We prefer financial sector especially in Singapore, India, Chile, UAE and Japan. For the most defensive recommendations, we would advise to find the most domestic risk markets of economies, where macro conditions remain flexible or remain adequately safe through encouragement.”

The report stated, “This includes India (75 percent domestic), the Philippines (91 percent domestic) and Malaysia (68 percent domestic), while on the contrary, we are cautious about domestic development in Indonesia and Thailand.”

Low beta stocks are strengthened by India

According to a second Morgan Stanley report on Tuesday, India’s ‘low beta’ is helping it to perform much better amid global selling, even though the index can reach several months low. According to experts, ‘Low beta’ can help reduce portfolio risk by providing security against the market declining.

Relief important factor in RBI policy and GST

The major catalist for India includes soft attitude issued by RBI, encouragement through GST rate cuts and trade agreement with the US. Morgan Stanley also expect food inflation and reduction in oil prices, which will lead to food and non-food inflation at normal levels.

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