Morgan Stanley upgrades India to ‘overweight’
May 20th, 2009
Jonathan Garner of Morgan Stanley said the organisation has upgraded India to ‘overweight’ as political risk is improving. India’s valuations and earnings growth are likely to improve, he said.
“Our current target price for the Sensex is 15,300 but our bull case target is substantially above that,” he added.
The markets are closely watching the choice for Finance Minister and the upcoming Budget, he said, adding, “Liberalisation of banking, retail will boost economic growth. India’s reliance on foreign capital flows is the key external vulnerability.”