Morgan Stanley says Indian equities are poised for a significant recovery in coming months, citing low valuations and profit‑share outperformance.
The Sensex trades near its cheapest level in gold terms while 12‑month performance ranks among the worst historically.
Bank expects strong policy momentum, resilient domestic demand and rising defense spending to support medium‑term growth despite supply‑side challenges.
Portfolio tilt favors domestic cyclicals (financials, consumer discretionary, industrials) and underweights energy, materials, utilities, and healthcare.