Tag: morgan stanley

Analysts at Morgan Stanley, have lowered their GDP growth estimates following Nomura slashed India's 2023 GDP growth forecast to 4.7 percent from its earlier projection of 5.4 percent amid recession fears and rising interest rates. Analysts in Morgan Stanley now expect the Indian economy - as measured by GDP - to grow at 7.2 percent in fiscal 2022-23 (FY23), 40 basis points (bps) lower than their earlier estimates. For FY24, the revised projection stands at 6.4 percent - down 30 bps. Read more

The key benchmark indices broke respective psychological levels in trade today(28th Oct.2021) amid heavy broad-based sell-off. While the Sensex closed 1,158 points lower at 59,985, the Nifty lost 354 points to end the day at 17,857 levels. At the end of the day, the Nifty has slipped below its 20-DMA, which has opened the door for further downside, technical analysts said. "Relentless selling by FIIs is a key reason for this correction in the market. The next support level for the Nifty is around 17,650 level. Below this, 17,450-17,250 will be the next support zone. On the upside, 18,150-18,300 has become an immediate supply zone," said Santosh Meena, head of research at Swastika Investment. Read more

The Indian equity market will outperform their emerging market (EM) peers in 2021, the latest report by Morgan Stanley and bets on domestic cyclical stocks followed by rate sensitives. The brokerage retained its base case year-end target for Sensex at 55,000 but suggested that if all the pieces fall into place, the 30-stock benchmark could go as high as 61,000 by end of December, a gain of 20 percent from the current level. Morgan Stanley’s indicators for global liquidity and valuations currently point to negative returns over the next 12 months, its leading India Indicators on growth, stability, government, and reserve bank of India policies, and corporate earnings are generally positive about equity return. “With accelerating earnings and reasonable relative valuations, trailing underperformance, and strong policy traction, India seems set to beat EM (emerging markets),” the brokerage said in a note Read more

Christopher Wood, global head (equity strategy) at Jefferies in his latest note to investors, said that he has hiked allocation to Indian equities in his Asia Pacific ex-Japan relative-return portfolio by one percentage point and added two percentage points to the existing investment in HDFC in the Asia ex-Japan long-only portfolio. At 2x 12-month forward adjusted book, compared with a five-year average forward price-to-book ratio (P/BV) of 2.6x, Wood feels HDFC’s valuation remains attractive. Among Indian stocks, besides HDFC, Wood also holds Reliance Industries (RIL), Maruti Suzuki, SBI Life Insurance, ICICI Lombard General Insurance, DLF, and Cipla in his Asia ex-Japan thematic equity portfolio for long-only absolute-return investors. Read more

Morgan Stanley expects global economic growth as measured by GDP to contract by 3 percent in 2020 before rebounding to 5.9 percent in 2021. As regards India, Morgan Stanley sees no growth (0 percent) for 2020 but expects it to rebound sharply to 7.7 percent in 2021, which makes India the fourth fastest-growing economy in the Asia ex-Japan region – only behind Philippines (2021e GDP growth at 12.6 percent), Malaysia (9.6 percent) and China (9.2 percent). “The global economy appears headed to its most severe recession in the post-war era, although there is a fair chance of a rapid rebound in the second half of 2020-21 (H2-20/2021) on unprecedented policy easing, Covid-19 treatment,” wrote analysts at Morgan Stanley in a recent report co-authored by Jonathan F Garner, their chief Asia, and emerging market strategist.