"The evidence indicates that the virus/economy equation has shifted decisively from the early days of the outbreak," economists said in a note to clients, saying that the recovery has continued to gather momentum as countries get better at managing the virus.
The global financial firm said the company's transformation was underway but the execution was the key as it identified renewables, distribution and consumer-facing business as growth drivers.
In terms of valuations, SMID stocks are looking more attractive, setting them up for a re-rating if the growth outlook improves as we think it will, highlights Morgan Stanley.
The new campus will be located at Oberoi Realty’s Commerz III building in Goregaon and will be ready in 2023.
According the numbers collated by Merger Market, Morgan Stanley leads the league table completing deals worth $13.53 billion, which also makes the American investment banker the second largest in terms of volume as well with nine completed deals during the reporting period.
The U.S. investment bank, which has previously advised the world's largest oil company, was originally looking to be part of the advisory group on any deal, the sources added.
In a 53-page report on 'India's Digital Economy in a Post-COVID-19 World', Morgan Stanley said 2020 will likely see increasing online penetration in grocery and will put a few Super Apps into motion.
"We expect demand to rebound to about 97 million barrels per day (bpd) by Q4 as economies come out of lockdown - a significant improvement although still down about 4 million bpd year-on-year," the bank said.
The number of stocks trading above their 200-day moving average has climbed supported by "cyclical stocks" like small-caps, which is a telling sign that a recovery may be underway, said Mike Wilson of Morgan Stanley wrote in a note.
Morgan Stanley removed Godrej Consumer, HDFC, and MCX from their focus list, and added Sun Pharma, Apollo Hospitals, and Lupin to the list.
"The demand recovery will be somewhat muted, and we could see some structural changes to people's behaviour," Morgan Stanley's head of oil research Martijn Rats told reporters.
Wilson, however, advised investors to stay away from the energy sector.
The results capped first-quarter earnings from big US banks, marked by significant declines in profit and billions in provisions to cover for a wave of expected loan defaults due to a global economic slowdown triggered by the pandemic.
Morgan Stanley said the timing of normalisation is unclear, and every month of these challenges negatively affects RIL sales volumes across all its businesses.
Over the next few months, Morgan Stanley expects MSCI to rebalance MSCI India weights to reflect this change.
Sectorally, the action was seen in healthcare, IT, Realty, Bankex, Telecom, and Auto stocks which are trading with gains of over 4 percent each.
Individual investors should remember that every crisis is an opportunity. The present situation is no different, should you choose to wisely seize it and use it to your advantage.
Market benchmarks Sensex and Nifty closed in the red on March 30 as fears of recession kept investors away from riskier equities.
Morgan Stanley highlights 20 stocks in the focus list which include names like Bharti Airtel, Baja Auto, Maruti Suzuki, Motherson Sumi, Titan Company, Godrej Consumer, and ITC, among others.
Credit Suisse in a note to its clients said that almost 45 percent of the top 200 stocks by market cap are down by about 30 percent from their respective life highs, but we still do not believe it is time to bottom fish.
Sectorally, selling pressure was seen in banks, financials, as well as telecom stocks.
The global investment bank expects combined monetary and fiscal easing to help revive the global economy from 3QCY20, but a contraction in YoY growth in 1HCY20 still looks inevitable.
It would be the largest acquisition by an American bank since the 2008 global financial crisis, and comes as online brokers are competing fiercely for new customers.
The infusion by a fund run by Morgan Stanley Private Equity Asia will lead to the private equity (PE) giant acquiring a "significant minority stake" in CHFL, which began operations in April 2017, the companies said in a joint statement without disclosing how much the equity dilution will be.
Morgan Stanley backs three themes for 2020: a) domestic cyclical outperform defensives, b) value and growth stocks beat quality stocks, and c) mid-caps lead the large caps.