Morgan Stanley Reiterates Overweight On Indian Equities

Morgan Stanley on Feb. 2, 2026 reiterated a constructive view on Indian equities after the Union Budget, maintaining overweight stances on Financials, Consumer Discretionary and Industrials. The bank highlighted the Budget's emphasis on semiconductors, AI and capital expenditure, and noted a targeted fiscal deficit of 4.3% of GDP for F27 versus Morgan Stanley's 4.2% estimate. Morgan Stanley said these policies should support F2027 earnings visibility.