An overweight rating implies India's economy is expected to perform better in future.
With resilient macro indicators, India’s economy is on track to achieve the 6.2 per cent gross domestic product (GDP) forecast, said the firm.
India is now the top ranked, most-preferred market among emerging markets, it noted, rising from the sixth spot, due to supportive foreign inflows, macro stability and positive earnings outlook.
"India rises from 6 to 1 in our process, with relative valuations less extreme than in October, and India's ability to leverage multipolar world dynamics is a significant advantage," Morgan Stanley analysts said.
"India is arguably at the start of a long wave boom at the same time as China may be ending one," the report added.
ALCHEMPro News Desk (DS)
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