• Feedback
  • RSS Feed
  • Sitemap
Ommcom News
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ
No Result
View All Result
Odisha News, Odisha Breaking News, Odisha Latest News || Ommcom News
Home Business

Indian Households Bid On Stocks To Sustain For A Long Time, Like It Did In The US From 1980 To 2000: Morgan Stanley

OMMCOM NEWS by OMMCOM NEWS
August 4, 2023
in Business
Morgan Stanley

New Delhi:  India’s 401(k) moment has created a reliable domestic source of risk capital, foreign brokerage, Morgan Stanley said in a report.

Households continue to be less exposed to equities relative to other asset classes, and we see the domestic bid on stocks being sustained for a long time, like it did in the US from 1980 to 2000.

With reducing dependence of FPI equity flows, India’s beta to EM is now down to around 0.6, it said.

The most important catalyst in 2H23 is the market’s view on the 2024 general election outcome, foreign brokerage, Morgan Stanley said in a report.

If the Indian electorate chooses a less-favourable political formation in 2024, the equity markets could experience a significant drawdown, foreign brokerage, Morgan Stanley said in a report.

The key risks include slower global growth, tight global liquidity, weather vagaries, worsening of state fiscal position, a rise in commodity prices and relatively rich valuations.

The recent upgrade to OW in APxj/EM market allocation reflects India’s growing absolute and relative attractiveness as an equity market, Morgan Stanley said.

Listing three reasons for buying Indian stocks, the brokerage said macro stability and a secular positive BoP are in the offing. Flexible inflation targeting accompanied by rising exports’ share and falling oil intensity is creating a benign CAD outlook.

A multi-polar world thesis is driving investment flows (mostly FDI) to India leading to a potential BoP surplus and surplus domestic liquidity.

Thus, India can run a lower rate gap to the world and may also experience lower inflation volatility. Hence, the equity market is experiencing lower return correlation with oil prices, Fed Fund rate changes and US growth.

On strong relative and absolute growth, it said: “We believe we are in a profit cycle that is only halfway through, with profit share in GDP rising from a low of 2 per cent in 2020 to about 4 per cent currently and likely heading to 8 per cent in the coming four to five years. This implies about 20 per cent compounding of earnings growth.

“Underscoring this forecast is the start of new private capex cycle, under-geared balance sheets, a healthy banking system, lower corporate tax rates, improving terms of trade and structural consumption demand outlook offset a tad by likely consolidation in government deficit,” it added.

(IANS)

Tags: Morgan Stanley
ShareTweetSendSharePinShareSend
Previous Post

SC Dismisses Plea Challenging Appointment Of Arun Goel As Election Commissioner

Next Post

Subroto Bagchi Appointed Chief Advisor Of Odisha Govt For Institutional Capacity Building

Related Posts

sensex
Business

Sensex Surges 700 Points, Nifty Reclaims 26,000 As IT Stocks Lead Market Rally

October 23, 2025
Piyush Goyal
Business

India Calls For Closer South-South Ties In Critical Minerals, Fertilisers

October 22, 2025
Piyush Goyal
Business

Piyush Goyal To Visit Germany To Boost Bilateral Trade And Investment

October 22, 2025
Car Sales
Business

Car Sales More Than Doubled To Over Half A Million Units: FM Sitharaman On GST 2.0

October 22, 2025
Diwali Sales
Business

FM Sitharaman Highlights Surge In Diwali Sales To All-Time High Of Rs 6.05 Lakh Crore

October 22, 2025
Share Market
Business

Domestic Equity Markets Gain Momentum On Back Of Resilient Q1 GDP Data: Report

October 22, 2025
Next Post

Subroto Bagchi Appointed Chief Advisor Of Odisha Govt For Institutional Capacity Building

Kedarnath Yatra

Landslide In Uttarakhand; 19 Missing, 3 Bodies Recovered

Ireland Announce Squad For T20Is Against India; Bring In Fionn Hand, Gareth Delany

KHIMJI
OMC
  • Feedback
  • RSS Feed
  • Sitemap

© 2025 - Ommcom News. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • Odisha
  • Nation
  • World
  • Sports
  • Business
  • Entertainment
  • Videos
  • Science & Tech
  • Photo Gallery
  • ଓଡ଼ିଆରେ ପଢନ୍ତୁ

© 2025 - Ommcom News. All Rights Reserved.