MUMBAI: Indian equities is expected to stage a strong recovery over the next year, supported by a clear policy shift from the government and improving economic conditions, a new report said on Tuesday.
Global brokerage Morgan Stanley believes that the worst phase of the mid-cycle slowdown is now behind the market, and that earnings growth will strengthen in the months ahead.
According to its latest report, India’s long-term growth story is becoming stronger with recent policy actions.
The brokerage said most risks to its view come from outside India, while domestic fundamentals remain solid.
It also noted that 2026 is likely to be a “macro trade” year, marking a shift from the stock-picking environment that dominated 2025.