Markets haven't priced in a coalition government, says Morgan Stanley

Investors likely to take a view after state election results next month

Foreign brokerage house Morgan Stanley set up shop in India 25 years ago, in a decade when coalition governments ruled the roost at the center. Whether another one will form the government in 2019 will be a key factor for market in the year ahead.  

“The markets are not going to be at all calm about elections...(they) are going to be all over the place,” said Ridham Desai, head of India research and equity strategist at Morgan Stanley India Company, speaking at an event to mark the organisation’s anniversary in India.  

The market has not yet priced in