Morgan Stanley Bullish on Indian Equities Post-Budget: Overweight on Financials and Industrials

Morgan Stanley remains constructive and bullish on Indian equities, maintaining an 'Overweight' stance on Financials, Consumer Discretionary, and Industrials.

The key sectors expected to benefit are Financials, Industrials, and Consumer Discretionary, driven by government spending and tech-led growth.

The Union Budget has targeted a fiscal deficit of 4.3 percent of GDP for the financial year 2027.

The Budget changed buyback taxation from dividend rates to capital gains rates, which is expected to increase demand for equities and encourage more buybacks.

Morgan Stanley has set a target of 95,000 for the Sensex, based on an 18 times forward price-to-earnings multiple.