India likely to outperform emerging markets: Morgan Stanley

Ridham Desai of Morgan Stanley said,"We think a mix of macro stability and the relative price of money and growth drives India's performance relative to emerging markets. Valuations play a less than expected role.""Given the current mix of relative earnings growth, relative interest rates and valuations, we think India will likely outperform emerging markets. India is our top pick in an EM context," he added.Christopher Wood of CLSA said, "While Donald Trump criticized quantitative easing and the Fed during his presidential campaign, he is very unlikely to prove a 'hard money' president in practice. Rather the opposite is likely, which is why his appointments to the Fed will be particularly interesting. If such a monetary tightening scare does happen, it is more likely to lead to a flattening of the yield curve."