India’s low beta characteristic make it an ideal market for the uncertain macro environment that equities are dealing with. Valuations are the most attractive since the Covid pandemic, said the report. Financials have outperformed and we expect that to continue. Consumer discretionary and select industrials could follow suit, said Morgan Stanley. The implication is that India will be the world’s most sought-after consumer market, it will undergo a major energy transition, credit to GDP will rise and manufacturing could gain share in GDP. The ongoing quarter may produce upside surprises in earnings, the report said. The country is likely gaining share in global output in the coming decades driven by strong foundational factors including robust population growth, a functioning democracy, macro stability influenced policy, better infrastructure, a rising entrepreneurial class and improving social outcomes. The report mentioned that the country will be a stock pickers’ market, in contrast to one driven by topdown or macro factors since the pandemic. It added that a likely positive shift in fundamentals is not in the price – we expect India to recover lost ground against its peer group through the rest of 2025.