<p>Morgan Stanley has upgraded its view on Indian markets to "overweight" from "equal weight", citing easing valuations as compared to October 2022, when the global brokerage identified the onset of a new bull market in Asian and emerging market equities.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/reliance-jumps-16-places-now-at-number-88-on-fortune-global-500-list-1243259.html">Reliance jumps 16 places, now at number 88 on Fortune Global 500 list</a></strong></p>.<p>India is now the top ranked, most-preferred market among emerging markets (EMs), rising from the sixth spot, due to supportive foreign inflows, macro stability and positive earnings outlook, the brokerage said in a note late Wednesday.</p>.<p>"We see a secular trend towards sustained superior earnings per share (EPS) growth versus EM over the cycle," Morgan Stanley analysts said, adding that a young demographic profile is supporting equity inflows.</p>.<p>Sectorally, the brokerage remains overweight on financials, consumer discretionary and industrial segments in India, and has an "add" rating on Larsen & Toubro and Maruti Suzuki India in its Asia Pacific focus and Global Emerging Markets lists.</p>.<p>The situation in Indian markets is in stark contrast to that in China, with the country at the start of a long-wave boom at the same time as China may be ending one, it said.</p>.<p>"We think returning India to an "overweight" rating and downgrading China to "equal weight" is warranted," analysts said, referring to the Indian markets' outperformance over China as a sign of a structural breakout in favour of India.</p>
<p>Morgan Stanley has upgraded its view on Indian markets to "overweight" from "equal weight", citing easing valuations as compared to October 2022, when the global brokerage identified the onset of a new bull market in Asian and emerging market equities.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/reliance-jumps-16-places-now-at-number-88-on-fortune-global-500-list-1243259.html">Reliance jumps 16 places, now at number 88 on Fortune Global 500 list</a></strong></p>.<p>India is now the top ranked, most-preferred market among emerging markets (EMs), rising from the sixth spot, due to supportive foreign inflows, macro stability and positive earnings outlook, the brokerage said in a note late Wednesday.</p>.<p>"We see a secular trend towards sustained superior earnings per share (EPS) growth versus EM over the cycle," Morgan Stanley analysts said, adding that a young demographic profile is supporting equity inflows.</p>.<p>Sectorally, the brokerage remains overweight on financials, consumer discretionary and industrial segments in India, and has an "add" rating on Larsen & Toubro and Maruti Suzuki India in its Asia Pacific focus and Global Emerging Markets lists.</p>.<p>The situation in Indian markets is in stark contrast to that in China, with the country at the start of a long-wave boom at the same time as China may be ending one, it said.</p>.<p>"We think returning India to an "overweight" rating and downgrading China to "equal weight" is warranted," analysts said, referring to the Indian markets' outperformance over China as a sign of a structural breakout in favour of India.</p>