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Morgan Stanley cuts its India overweight to 50 bps, citing weak earnings

Going ahead, it sees the impact of higher oil prices and the prospect of a higher deficit as obstacles for the market index

The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, New York January 20, 2015. REUTERS
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The corporate logo of financial firm Morgan Stanley is pictured on the company's world headquarters in New York, New York January 20, 2015. REUTERS

Puneet Wadhwa New Delhi
Morgan Stanley has reduced its overweight stance on India in its portfolio to 50 basis points (bps) from 150 bps earlier, citing disappointment in earnings. Going ahead, it sees the impact of higher oil prices, the election calendar and the prospect of a higher deficit as obstacles for the market index.

“We cut our overweight in India to 50 bps, after disappointing earnings season and slowing revisions breadth. Quantitatively, India ranks well on a fundamental basis (strategist and stock analyst views), but valuations are not particularly cheap (especially on a price-to-earnings basis); and earnings estimate revisions, while near record highs

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First Published: Feb 28 2018 | 10:20 PM IST

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