Morgan Stanley: India trails emerging markets on AI, oil worries
Indian stocks haven't kept up with other emerging markets over the past year, and Morgan Stanley points to missing out on the global AI buzz and oil price worries as key reasons.
Analysts Ridham Desai and Nayant Parekh also flagged that AI might shake up India's IT outsourcing scene, though they're hopeful that new tech could boost productivity in the long run.
Indian buybacks near $10 billion
There's still good news: corporate buybacks are close to $10 billion on a trailing 12-month basis, showing companies' confidence.
Plus, India's stock valuations suggest solid long-term returns.
Morgan Stanley expects earnings growth to pick up speed soon, fueled by more local investment.
They also predict India's investment-to-GDP ratio will hit 37.5% in five years thanks to big spending in energy and semiconductors — setting the stage for steady growth even if global markets stay shaky.