While reiterating the bullish view on India, Morgan Stanley India's Ridham Desai in the note cited factors that have helped India outperform in a period of global selloff, though the risk of testing 'multi-month low' remains, he added.
Morgan Stanley India's Ridham Desai has said that Indian equities are looking 'attractive', adding that the small and midcaps have now come out of their valuation excesses after a fall of over 20 percent from recent highs.
Although India's sensitivity to oil prices has decreased, a sudden significant increase in oil prices could still cause near-term pain, said Desai.
Desai sees fiscal consolidation accelerating under Modi 3.0, with the government's primary focus being macro stability and policy continuity.
When it comes to areas to bet on in the Indian market, Desai picked up domestic cyclicals like private banks, consumption and industrial names.
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