Morgan Stanley expects outperformance from banks to continue. The firm favours cyclicals over defensives, with small and mid-caps preferred over large caps. Morgan Stanley also maintains an overweight stance on financials, consumer discretionary, industrials, and technology while underweighting other sectors. \”Unlike the macro-driven trends seen since the Covid pandemic, this market is expected to be led by stock pickers,\” the firm said in a note to clients. The brokerage expects growth to recover after a slowdown in the second half of 2024 on fiscal and monetary policy support, with recovery in service exports. We expect GDP at 6.3 percent in FY25 and 6.5 percent inFY26, according to Morgan Stanley. The report by Morgan Stanley is published by Moneycontrol.com on behalf of the Morgan Stanley Institutional Investor (MSI) Group. For confidential support on investing in India, call the Samaritans on 08457 90 90 90, visit a local Samaritans branch or click here for details.