Overweight India; multiple rate cuts by Mar: Morgan Stanley

Jonathan Garner, Morgan Stanley has maintained overweight rating on India, as India is the only major emerging market (EM) where economists see a near-term pick up in GDP growth driven by both consumer cyclical demand already evident in auto sales and capital expenditure demand driven by government progress in unblocking infrastructure approvals.

He said India also benefits more than any other large EM from lower oil and commodity prices as it is a major importer of these items.

According to him, inflation is below the central bank target and bond yields are falling with several more interest rate cuts likely over the next six months.