New Delhi, April 16 || A Morgan Stanley report on Wednesday said that India is one of their preferred equity markets where macro conditions are resilient or sufficiently buffered by stimulus.
According to the global brokerage, in the ‘Brave New World’ dynamic that has been in the driving seat early on in the new US administration, among the larger markets, “we keep our core recommendation of overweight (OW) domestic India, domestic Japan, Singapore and the UAE” among others.
“We update our APxJ/EM Market Allocation framework, as well as our Major 15 APAC/EM market recommendations. In Asia Pacific, our preferred markets remain India and Singapore, while Philippines also moves up to OW given valuation support,” said Morgan Stanley.
“We remain most cautious on Taiwan and New Zealand, while we reduce the underweight on Korea and move to an EW stance on Australia,” it added.
India and Australia also have moderate levels of export and total revenues in listed equities from the US, largely concentrated in Healthcare, as well as IT Services (India) and Industrials (for Australia).
The brokerage sees a relatively resilient outlook for Financials earnings, with capital ratios and the asset quality outlook in a strong position across most of its coverage.
“We particularly like Financials in Singapore, India, Chile and the UAE, as well as Japan,” it added.