New Delhi: Brokerage firm Morgan Stanley said that India’s economy is on track to achieve the 6.2% GDP forecast, and raised the country’s status to ‘overweight’.
The rating ‘overweight’ suggests the economy of the country can perform better in future.
Morgan Stanley pointed out that the nation's reform and macro-stability plans supports a strong capex and profit outlook.
India’s promising performance comes against the backdrop of US losing AAA status.
Also, the world’s largest economy, China is facing slowdown.
‘India rises from 6 to 1 in our process, with relative valuations less extreme than in October, and India's ability to leverage multipolar world dynamics is a significant advantage,’ Morgan Stanley analysts reportedly said.
The report said that India is at the beginning of a ‘long wave boom at the same time as China may be ending one’.
The brokerage firm, however, cut its rating on Chinese stocks to ‘equal weight’, directing investors to capitalize on a rally, stemming from government’s stimulus packages.
Meanwhile, China stocks have showcased a boost following the government’s promise to increase growth in the nation.
Morgan Stanley’s moved India upward a few months after it rated the country ‘underweight’.