Morgan Stanley says India to outperform emerging markets
business Updated: Jun 02, 2016 06:33 IST
MUMBAI: India will outperform other emerging markets over the next 12-18 months, aided by macroeconomic stability and rising corporate earnings, global investment bank Morgan Stanley said on Wednesday. “Excluding banks, fourth-quarter earnings were the best since the Modi government came to power,” said Ridham Desai, head of India equity strategist at Morgan Stanley. The bank has a 12-month target of 27,500 for the Sensex, one of the few global markets that is expected to rise in the period. It also expects the RBI to cut interest rates by 50 basis points till March 2017 if the monsoons are normal this year. It expects a pick-up in consumption, public spending on capital expenditure and FDI to drive growth in India.