Morgan Stanley on Tuesday said the Indian stock market appears poised for a recovery from the steep relative correction since late September 2024, supported by a turning growth cycle. The market is transitioning into one that will be driven by macros and stock picking will lose importance, Morgan Stanley said adding: "We are capitalisation-agnostic." Advertisement

The foreign brokerage said key factors driving India's equity underperformance are reversing.

It noted that the growth slowdown that started the second half of 2024, coupled with rich relative valuations, appeared to be the fundamental drivers weighing down on domestic stocks. That India does not offer explicit Al-related trades is another reason, it said.

"The delay in the US trade deal has also contributed to volatility,

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