Where to invest ahead of 2019 general elections? Morgan Stanley answers

It is unlikely that the market is as optimistic as it has been in the past going into the 2019 elections, Morgan Stanley says

With the markets yet to price in the outcome of the general elections scheduled for May 2019, investors would be better off adding defensive and cyclical counters with a focus on large-cap stocks, suggests Ridham Desai, head of India research and India equity strategist at Morgan Stanley in a co-authored report with Sheela Rathi. 

“It is unlikely that the market is as optimistic as it has been in the past going into the 2019 elections. Post-election performance is purely a function of what's been priced in ahead,” they say.

While Morgan Stanley rules out the possibility of general elections being