A new Morgan Stanley report says Indian equity markets could be heading for a major re-rating by the end of 2026. The global brokerage says India’s macro environment is easing after years of tightness.

Sensex Could Slide to 76,000 in Bear Case: Morgan Stanley

 A new Morgan Stanley report says Indian equity markets could be heading for a major re-rating by the end of 2026. The global brokerage says India’s macro environment is easing after years of tightness.


Morgan Stanley's Moon-shot Target for Indian Equities

Global investment bank Morgan Stanley predicts that India’s benchmark Sensex could surpass the 100,000-point mark by December 2026, driven by strong corporate earnings, economic growth, and investor optimism. Analysts highlight robust sectors such as technology, finance, and infrastructure as key drivers. The forecast reflects growing confidence in India’s equity market, attracting domestic and international investors alike.

Morgan Stanley Predicts Sensex to Cross 100K Points in Dec 2026

Global investment bank Morgan Stanley predicts that India’s benchmark Sensex could surpass the 100,000-point mark by December 2026, driven by strong corporate earnings, economic growth, and investor optimism. Analysts highlight robust sectors such as technology, finance, and infrastructure as key drivers. The forecast reflects growing confidence in India’s equity market, attracting domestic and international investors alike.


Morgan Stanley has outperformed Wall Street’s expectations for its third-quarter earnings, with a remarkable 32 per cent rise in profit, driven by strong showings across its core divisions: wealth management, investment banking, and trading as detailed in a report by CNBC.&nbsp;

The US-based investment bank reported a profit of $3.2 billion, or $1.88 per share, surpassing the $1.58 per share estimate. Total revenue increased 16 per cent, reaching $15.38 billion, significantly above the $14.41 billion forecast.<o:p></o:p>

Boost from wealth management<o:p></o:p>

Morgan Stanley's wealth management division, which constitutes a substantial part of the bank’s operations, played a pivotal role in the robust earnings. Revenue from this sector surged by 14 per cent to $7.27 billion, surpassing the StreetAccount estimate of $6.87 billion. The division benefited from buoyant market conditions and increasing client activity as markets improved throughout the quarter.<o:p></o:p>

CEO Ted Pick expressed optimism about the firm’s future, noting, “The firm reported a strong third quarter in a constructive environment across our global footprint.” The positive market environment coupled with proactive strategies across business divisions contributed to the stellar results.<o:p></o:p>

Investment banking rebound<o:p></o:p>

After a challenging 2023 for investment banking, Morgan Stanley witnessed a 56 per cent jump in revenue from the sector. Revenue came in at $1.46 billion, exceeding analysts’ predictions of $1.36 billion. The return of mergers and acquisitions, alongside debt and equity underwriting activities, helped the investment banking arm recover significantly.<o:p></o:p>

Notably, the Federal Reserve's decision to cut interest rates during the quarter created a conducive environment for financing and deal-making, a critical factor for the bank’s resurgence in this space.<o:p></o:p>

Strong performance in trading<o:p></o:p>

The bank’s trading divisions also posted robust results, contributing to the overall earnings beat. Equity trading revenue increased by 21 per cent to $3.05 billion, well above the estimated $2.77 billion. Meanwhile, fixed income trading edged up by 3 per cent to $2 billion, surpassing expectations of $1.85 billion.<o:p></o:p>

The resurgence of investment banking and steady performance in wealth management and trading helped propel Morgan Stanley ahead of its competitors in the third quarter. Rival firms like JPMorgan Chase, Goldman Sachs, and Citigroup also posted strong results in the same period, reflecting broader gains across the financial services sector.<o:p></o:p>

With a 7.5 per cent increase in stock value following the earnings report, Morgan Stanley appears well-positioned to maintain its growth trajectory in the coming quarters. The combination of resilient markets and a return to more active corporate deal-making offers a promising outlook for the firm’s future.<o:p></o:p>

Morgan Stanley has outperformed Wall Street’s expectations for its third-quarter earnings, with a remarkable 32 per cent rise in profit, driven by strong showings across its core divisions: wealth management, investment banking, and trading as detailed in a report by CNBC.

Morgan Stanley has outperformed Wall Street’s expectations for its third-quarter earnings, with a remarkable 32 per cent rise in profit, driven by strong showings across its core divisions: wealth management, investment banking, and trading as detailed in a report by CNBC. The US-based investment bank reported a profit of $3.2 billion, or $1.88 per share, surpassing the $1.58 per share estimate. Total revenue increased 16 per cent, reaching $15.38 billion, significantly above the $14.41 billion forecast. Boost from wealth management Morgan Stanley's wealth management division, which constitutes a substantial part of the bank’s operations, played a pivotal role in the robust earnings. Revenue from this sector surged by 14 per cent to $7.27 billion, surpassing the StreetAccount estimate of $6.87 billion. The division benefited from buoyant market conditions and increasing client activity as markets improved throughout the quarter. CEO Ted Pick expressed optimism about the firm’s future, noting, “The firm reported a strong third quarter in a constructive environment across our global footprint.” The positive market environment coupled with proactive strategies across business divisions contributed to the stellar results. Investment banking rebound After a challenging 2023 for investment banking, Morgan Stanley witnessed a 56 per cent jump in revenue from the sector. Revenue came in at $1.46 billion, exceeding analysts’ predictions of $1.36 billion. The return of mergers and acquisitions, alongside debt and equity underwriting activities, helped the investment banking arm recover significantly. Notably, the Federal Reserve's decision to cut interest rates during the quarter created a conducive environment for financing and deal-making, a critical factor for the bank’s resurgence in this space. Strong performance in trading The bank’s trading divisions also posted robust results, contributing to the overall earnings beat. Equity trading revenue increased by 21 per cent to $3.05 billion, well above the estimated $2.77 billion. Meanwhile, fixed income trading edged up by 3 per cent to $2 billion, surpassing expectations of $1.85 billion. The resurgence of investment banking and steady performance in wealth management and trading helped propel Morgan Stanley ahead of its competitors in the third quarter. Rival firms like JPMorgan Chase, Goldman Sachs, and Citigroup also posted strong results in the same period, reflecting broader gains across the financial services sector. With a 7.5 per cent increase in stock value following the earnings report, Morgan Stanley appears well-positioned to maintain its growth trajectory in the coming quarters. The combination of resilient markets and a return to more active corporate deal-making offers a promising outlook for the firm’s future.

Morgan Stanley surpasses third-quarter expectations with 32% profit jump

Morgan Stanley has downgraded its earnings estimate for ASML, citing weakness in the memory chip market and concerns over demand from Intel and Chinese chipmakers. ASML's share price has already dropped by 30 percent during July and august.

Downgrade sparks concerns over future prospects

Uber Technologies Inc. is tapping the US investment-grade bond market for the first time since it attained the status of a blue-chip company.

It sold $4 billion of bonds in three pieces, said a person familiar with the matter, who asked not to be identified because the details are private. The longest piece of the offering, a 30-year security, priced at 1.3 percentage points over Treasuries after initial talks of about 1.6 percentage points, said the person.

Early demand indications were around $8 billion following investor calls Tuesday, according to people with knowledge of the matter. Morgan Stanley, BofA Securities Inc. and JPMorgan Chase &amp; Co. managed the bond sale.

Uber didn't immediately respond to a request for comment. Representatives for BofA, JPMorgan and Morgan Stanley declined to comment.

The deal was attractive because of the company's record profitability in the second quarter, double-digit bookings, and top-line growth, according to Bloomberg Intelligence analyst Robert Schiffman. "Rapidly improving free cash flow trends should continue to propel Uber's ratings higher over the next few years," he added.

The proceeds from the offering are assumed to be used by Uber to repay about $1.97 billion of outstanding loans as of the end of June, and the remainder will be used to redeem $1.5 billion worth of 8 per cent senior notes due 2026 and for general corporate purpose, said the people.

The company's credit rating was first upgraded to BBB- by S&amp;P Global Ratings from BB+ on Aug. 16. Days later, Fitch Ratings assigned Uber a BBB grade and, on Aug. 27, Moody's Ratings also raised the firm to investment grade.

Uber Technologies Inc. is tapping the US investment-grade bond market for the first time since it attained the status of a blue-chip company. It sold $4 billion of bonds in three pieces, said a person familiar with the matter, who asked not to be identified because the details are private.

Uber Technologies Inc. is tapping the US investment-grade bond market for the first time since it attained the status of a blue-chip company. It sold $4 billion of bonds in three pieces, said a person familiar with the matter, who asked not to be identified because the details are private. The longest piece of the offering, a 30-year security, priced at 1.3 percentage points over Treasuries after initial talks of about 1.6 percentage points, said the person. Early demand indications were around $8 billion following investor calls Tuesday, according to people with knowledge of the matter. Morgan Stanley, BofA Securities Inc. and JPMorgan Chase & Co. managed the bond sale. Uber didn't immediately respond to a request for comment. Representatives for BofA, JPMorgan and Morgan Stanley declined to comment. The deal was attractive because of the company's record profitability in the second quarter, double-digit bookings, and top-line growth, according to Bloomberg Intelligence analyst Robert Schiffman. "Rapidly improving free cash flow trends should continue to propel Uber's ratings higher over the next few years," he added. The proceeds from the offering are assumed to be used by Uber to repay about $1.97 billion of outstanding loans as of the end of June, and the remainder will be used to redeem $1.5 billion worth of 8 per cent senior notes due 2026 and for general corporate purpose, said the people. The company's credit rating was first upgraded to BBB- by S&P Global Ratings from BB+ on Aug. 16. Days later, Fitch Ratings assigned Uber a BBB grade and, on Aug. 27, Moody's Ratings also raised the firm to investment grade.

Uber enters investment-grade bond market with $4 billion offering

Morgan Stanley beat second-quarter profit expectations on Tuesday due to its massive rise in investment banking revenues, even with the muted growth of its wealth management division.

Shares of the bank rose 1.4 per cent in morning trading after earlier losses in the premarket.

Wealth management revenue growth slowed to 2 per cent in the second quarter from a year earlier when it rose 16 per cent.

Net new assets were $36.4 billion, well below $89.5 billion a year earlier. 
Unit revenue of $6.79 billion fell just shy of Wall Street expectations, LSEG data cited by Reuters showed.

In contrast, institutional securities revenue jumped 23 per cent to $7 billion, with investment banking revenue becoming 51 per cent higher. 
Chief Financial Officer Sharon Yeshaya said the investment banking sector was "in the early innings of recovery" and added that broad-based growth has been witnessed across sectors and regions.

"Investment banking pipelines are healthy and diverse, dialogues are active, and markets are open," Yeshaya said on a conference call with analysts.

Growth in net new assets within the wealth management business can be lumpy and was impacted by higher client tax payments, though annual growth remains within the company's guidance of 5 per cent to 7 per cent, she added.

Citigroup analysts, led by Keith Horowitz, termed the results an "overall solid quarter," pumping up their confidence in Morgan Stanley's wealth management trajectory despite uneven net new asset growth.

Wealth management has been in its prime for Morgan Stanley under former Chief Executive Officer James Gorman and is now engaged in the generation of stable revenue as opposed to the more volatile investment banking and trading businesses.

The bank has eyes on the management of $10 trillion in client assets. 
The bank's net income rose to $3.1 billion, or $1.82 per share, in the three months ended June 30, from $2.2 billion, or $1.24 per share, a year earlier.

Analysts surveyed by LSEG had expected $1.65 per share on average. 
Total quarterly revenue of $15.02 billion at Morgan Stanley also exceeded Wall Street expectations, and the bank increased its quarterly dividend by 7.5 cents to $0.925 a share.

With a better outlook in the economy, expectations of interest rate cuts by the US, and rocketing equity markets, buyouts, debt sales, and stock offerings are getting a new lease of life after the nearly two-year drought for activity on Wall Street.

Morgan Stanley's investment banking revenues leapt 51 per cent to $1.62 billion in the second quarter.

"The firm delivered another strong quarter in an improving capital markets environment," said Chief Executive Officer Ted Pick.

Equity underwriting revenue rose 56 per cent to $352 million as initial public offerings and private stock sales rebounded, while fixed income underwriting jumped 71 per cent to $675 million.

Yeshaya noted that there was fast growth in non-investment grade issues. Advisory revenues rose 30 per cent to $592 million as completed deals rose.

Other major banks, including Goldman Sachs, JPMorgan Chase, and Citi, also post strong investment banking revenue.

The equities and bond trading desks of Morgan Stanley did better than expected for the April-June quarter.

Revenues from equities were up 18 per cent year-on-year, with revenues from fixed income 16 per cent higher, mirroring strong results across the Street.

Revenues at the institutional securities unit rose to $7 billion from $5.7 billion a year ago.

Morgan Stanley beat second-quarter profit expectations on Tuesday due to its massive rise in investment banking revenues, even with the muted growth of its wealth management division.

Morgan Stanley beat second-quarter profit expectations on Tuesday due to its massive rise in investment banking revenues, even with the muted growth of its wealth management division. Shares of the bank rose 1.4 per cent in morning trading after earlier losses in the premarket. Wealth management revenue growth slowed to 2 per cent in the second quarter from a year earlier when it rose 16 per cent. Net new assets were $36.4 billion, well below $89.5 billion a year earlier. Unit revenue of $6.79 billion fell just shy of Wall Street expectations, LSEG data cited by Reuters showed. In contrast, institutional securities revenue jumped 23 per cent to $7 billion, with investment banking revenue becoming 51 per cent higher. Chief Financial Officer Sharon Yeshaya said the investment banking sector was "in the early innings of recovery" and added that broad-based growth has been witnessed across sectors and regions. "Investment banking pipelines are healthy and diverse, dialogues are active, and markets are open," Yeshaya said on a conference call with analysts. Growth in net new assets within the wealth management business can be lumpy and was impacted by higher client tax payments, though annual growth remains within the company's guidance of 5 per cent to 7 per cent, she added. Citigroup analysts, led by Keith Horowitz, termed the results an "overall solid quarter," pumping up their confidence in Morgan Stanley's wealth management trajectory despite uneven net new asset growth. Wealth management has been in its prime for Morgan Stanley under former Chief Executive Officer James Gorman and is now engaged in the generation of stable revenue as opposed to the more volatile investment banking and trading businesses. The bank has eyes on the management of $10 trillion in client assets. The bank's net income rose to $3.1 billion, or $1.82 per share, in the three months ended June 30, from $2.2 billion, or $1.24 per share, a year earlier. Analysts surveyed by LSEG had expected $1.65 per share on average. Total quarterly revenue of $15.02 billion at Morgan Stanley also exceeded Wall Street expectations, and the bank increased its quarterly dividend by 7.5 cents to $0.925 a share. With a better outlook in the economy, expectations of interest rate cuts by the US, and rocketing equity markets, buyouts, debt sales, and stock offerings are getting a new lease of life after the nearly two-year drought for activity on Wall Street. Morgan Stanley's investment banking revenues leapt 51 per cent to $1.62 billion in the second quarter. "The firm delivered another strong quarter in an improving capital markets environment," said Chief Executive Officer Ted Pick. Equity underwriting revenue rose 56 per cent to $352 million as initial public offerings and private stock sales rebounded, while fixed income underwriting jumped 71 per cent to $675 million. Yeshaya noted that there was fast growth in non-investment grade issues. Advisory revenues rose 30 per cent to $592 million as completed deals rose. Other major banks, including Goldman Sachs, JPMorgan Chase, and Citi, also post strong investment banking revenue. The equities and bond trading desks of Morgan Stanley did better than expected for the April-June quarter. Revenues from equities were up 18 per cent year-on-year, with revenues from fixed income 16 per cent higher, mirroring strong results across the Street. Revenues at the institutional securities unit rose to $7 billion from $5.7 billion a year ago.

Morgan Stanley exceeds Q2 profit expectations amid investment banking surge

<h2 class="MsoNormal">Election outcomes and bond market prospects<o:p></o:p></h2>

Morgan Stanley's chief investment officer, Michael Wilson, believes that if US President Joe Biden is re-elected, bond markets will benefit. Wilson said at the Reuters Global Markets Forum on Wednesday that Biden's administration will likely raise taxes to balance government expenditure, which might assist bond markets.<o:p></o:p>

Wilson, on the other hand, stated that a victory for former President Donald Trump in the forthcoming November 5 election will boost economic development while posing issues for bonds.<o:p></o:p>

<h2 class="MsoNormal">Investor preferences and earnings revisions<o:p></o:p></h2>

Over the last 12 to 18 months, investors have gravitated into high-quality large-cap firms that have seen earnings revisions, resulting in alpha—a performance measure that indicates gains above a benchmark index. Wilson stressed, "The alpha is not so much at the sector level but at the stock level." He also mentioned that earnings revisions have created significant alpha potential for active investors, a trend that many institutional customers have noticed this year.<o:p></o:p>

<h2 class="MsoNormal">Stock picking and portfolio strategies<o:p></o:p></h2>

Wilson stressed the importance of stock selection for long-term investors, but macro-investors and risk-parity managers have deemphasised bonds in favour of commodities and currencies. "For stocks, it's all about earnings growth—what companies can grow earnings and cash flow faster than inflation, and more importantly, expectations," he stated.<o:p></o:p>

According to LSEG IBES data, 788 of the 1,379 US businesses reporting earnings by June 7 had their projections revised upward, while 591 had them revised lower. Wilson stated that, despite stronger-than-expected first-quarter earnings growth, smaller market-cap companies have reported lower customer demand and slower loan growth.<o:p></o:p>

<h2 class="MsoNormal">Impact of political landscape on markets<o:p></o:p></h2>

Wilson highlighted the possible impact of the US election results on market sectors. He stated that a Biden victory would favour large-cap growth corporations, whereas a Trump government may boost the oil and banking sectors, as well as small-caps. Immigration policy under both governments would also be widely studied, with a Biden victory likely to be "more favourable for labour supply and inflation," while a Trump victory may reignite inflation fears by "shutting down borders."<o:p></o:p>

(With inputs from Agencies)<o:p></o:p>

Election outcomes and bond market prospects Morgan Stanley's chief investment officer, Michael Wilson, believes that if US President Joe Biden is re-elected, bond markets will benefit.

Election outcomes and bond market prospects Morgan Stanley's chief investment officer, Michael Wilson, believes that if US President Joe Biden is re-elected, bond markets will benefit. Wilson said at the Reuters Global Markets Forum on Wednesday that Biden's administration will likely raise taxes to balance government expenditure, which might assist bond markets. Wilson, on the other hand, stated that a victory for former President Donald Trump in the forthcoming November 5 election will boost economic development while posing issues for bonds. Investor preferences and earnings revisions Over the last 12 to 18 months, investors have gravitated into high-quality large-cap firms that have seen earnings revisions, resulting in alpha—a performance measure that indicates gains above a benchmark index. Wilson stressed, "The alpha is not so much at the sector level but at the stock level." He also mentioned that earnings revisions have created significant alpha potential for active investors, a trend that many institutional customers have noticed this year. Stock picking and portfolio strategies Wilson stressed the importance of stock selection for long-term investors, but macro-investors and risk-parity managers have deemphasised bonds in favour of commodities and currencies. "For stocks, it's all about earnings growth—what companies can grow earnings and cash flow faster than inflation, and more importantly, expectations," he stated. According to LSEG IBES data, 788 of the 1,379 US businesses reporting earnings by June 7 had their projections revised upward, while 591 had them revised lower. Wilson stated that, despite stronger-than-expected first-quarter earnings growth, smaller market-cap companies have reported lower customer demand and slower loan growth. Impact of political landscape on markets Wilson highlighted the possible impact of the US election results on market sectors. He stated that a Biden victory would favour large-cap growth corporations, whereas a Trump government may boost the oil and banking sectors, as well as small-caps. Immigration policy under both governments would also be widely studied, with a Biden victory likely to be "more favourable for labour supply and inflation," while a Trump victory may reignite inflation fears by "shutting down borders." (With inputs from Agencies)

Bond markets poised for gains if Biden re-elected: Morgan Stanley CIO

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India's finance minister, Nirmala Sitharaman, has said that the gross domestic product is on track to grow by 8% or more in the first three months of 2024. Improved inflation management and macroeconomic stability is likely to help India clock the same rate of expansion for the 2023/24 financial year.

Sitharaman: GDP on track to grow by 8 per cent in Jan-Mar 2024

India is experiencing an economic surge reminiscent of the golden era between 2003 and 2007, according to a report by Morgan Stanley economists. <o:p></o:p>

This revival is primarily fuelled by an uptick in investments, echoing the growth trajectory of nearly two decades ago when the nation witnessed an average growth rate exceeding 8 per cent. <o:p></o:p>

The report, titled 'The Viewpoint: India - Why this feels like 2003-07', highlights the key role of capital expenditure (capex) in propelling the current expansion.<o:p></o:p>

Morgan Stanley's analysis emphasises a shift towards investment-driven growth over consumption, with a notable rise in public capex initially, followed by a rapid uptake in private investment. <o:p></o:p>

Notably, urban consumers are spearheading consumption growth, complemented by a burgeoning demand from rural sectors. <o:p></o:p>

The surge in India's global export market share coupled with effective management of macroeconomic stability risks further underpin this economic upswing.<o:p></o:p>

A key indicator of the ongoing expansion is the elevation in the investment-to-GDP ratio. <o:p></o:p>

Similar to the 2003-07 period, where this ratio soared from 27 per cent in Fiscal Year 2003 to 39 per cent in Fiscal Year 2008, the current trend is witnessing a resurgence. <o:p></o:p>

Presently standing at 34 per cent of GDP, it is anticipated to climb further to 36 per cent by Fiscal Year 2027, signifying a robust growth trajectory.<o:p></o:p>

During the 2003-07 boom, India experienced an impressive average GDP growth of 8.6 per cent alongside a modest headline CPI inflation of 4.8 per cent. <o:p></o:p>

Despite external shocks like the surge in oil prices, the current account deficit remained manageable, fluctuating within a comfortable range.<o:p></o:p>

Gross fixed capital formation (GFCF) also witnessed a remarkable acceleration during this period, indicating a robust investment climate.<o:p></o:p>

In the present cycle, real GFCF growth continues to demonstrate resilience, outperforming pre-Covid averages. <o:p></o:p>

Public capex has emerged as a primary growth driver, compensating for the corporate sector's subdued investment sentiment in the wake of previous shocks. <o:p></o:p>

However, with corporate profits rebounding and early indications of private capex gaining traction, the economic landscape is evolving.<o:p></o:p>

Despite the optimistic outlook, challenges persist. <o:p></o:p>

Private consumption remains relatively subdued, tracking below pre-Covid averages, underscoring the need for sustained efforts to stimulate domestic demand. <o:p></o:p>

Policymakers have been actively pursuing supply-side reforms to bolster the investment climate, exemplified by the uptick in real government fixed capex growth.<o:p></o:p>

Morgan Stanley underscores the critical role of public sector investments, particularly in infrastructure projects, to alleviate supply-side constraints and pave the way for robust private sector participation. <o:p></o:p>

Such long-term investments are deemed essential for sustaining the current economic momentum and fostering inclusive growth.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

India is experiencing an economic surge reminiscent of the golden era between 2003 and 2007, according to a report by Morgan Stanley economists. This revival is primarily fuelled by an uptick in investments, echoing the growth trajectory of nearly two decades ago when the nation witnessed an average growth rate exceeding 8 per cent.

India is experiencing an economic surge reminiscent of the golden era between 2003 and 2007, according to a report by Morgan Stanley economists. This revival is primarily fuelled by an uptick in investments, echoing the growth trajectory of nearly two decades ago when the nation witnessed an average growth rate exceeding 8 per cent. The report, titled 'The Viewpoint: India - Why this feels like 2003-07', highlights the key role of capital expenditure (capex) in propelling the current expansion. Morgan Stanley's analysis emphasises a shift towards investment-driven growth over consumption, with a notable rise in public capex initially, followed by a rapid uptake in private investment. Notably, urban consumers are spearheading consumption growth, complemented by a burgeoning demand from rural sectors. The surge in India's global export market share coupled with effective management of macroeconomic stability risks further underpin this economic upswing. A key indicator of the ongoing expansion is the elevation in the investment-to-GDP ratio. Similar to the 2003-07 period, where this ratio soared from 27 per cent in Fiscal Year 2003 to 39 per cent in Fiscal Year 2008, the current trend is witnessing a resurgence. Presently standing at 34 per cent of GDP, it is anticipated to climb further to 36 per cent by Fiscal Year 2027, signifying a robust growth trajectory. During the 2003-07 boom, India experienced an impressive average GDP growth of 8.6 per cent alongside a modest headline CPI inflation of 4.8 per cent. Despite external shocks like the surge in oil prices, the current account deficit remained manageable, fluctuating within a comfortable range. Gross fixed capital formation (GFCF) also witnessed a remarkable acceleration during this period, indicating a robust investment climate. In the present cycle, real GFCF growth continues to demonstrate resilience, outperforming pre-Covid averages. Public capex has emerged as a primary growth driver, compensating for the corporate sector's subdued investment sentiment in the wake of previous shocks. However, with corporate profits rebounding and early indications of private capex gaining traction, the economic landscape is evolving. Despite the optimistic outlook, challenges persist. Private consumption remains relatively subdued, tracking below pre-Covid averages, underscoring the need for sustained efforts to stimulate domestic demand. Policymakers have been actively pursuing supply-side reforms to bolster the investment climate, exemplified by the uptick in real government fixed capex growth. Morgan Stanley underscores the critical role of public sector investments, particularly in infrastructure projects, to alleviate supply-side constraints and pave the way for robust private sector participation. Such long-term investments are deemed essential for sustaining the current economic momentum and fostering inclusive growth. (With inputs from PTI)

India’s economic growth resembles 2003-07 boom: Morgan Stanley Report

Echoing the vibrancy of India's economic boom during the mid-2000s, a recent report by Morgan Stanley highlights striking parallels between then and now, attributing the current surge to a strong investment trajectory. <o:p></o:p>

Economists at Morgan Stanley highlight the resemblance between India's current growth cycle and the period from 2003 to 2007, characterised by an investment-driven expansion that propelled the economy to impressive heights.<o:p></o:p>

The report indicates the vital role of investment as a primary driver of India's economic resurgence, mirroring the trajectory witnessed during the mid-2000s. <o:p></o:p>

Notably, India's gross fixed capital formation has surged, signalling a sustained upswing in investment activity after a decade-long decline. <o:p></o:p>

The investment ratio, which plummeted to 28 per cent in 2021, is projected to climb to 36 per cent by 2027, indicating the buoyancy of India's economic landscape.<o:p></o:p>

According to Bloomberg, Morgan Stanley economists project a promising trajectory for India's investment cycle, brought by the prospects of robust capital expenditure, burgeoning exports, and enhanced macroeconomic stability. <o:p></o:p>

Despite concerns about sustainability, the report posits that India's current growth trajectory exhibits resilience, with ample scope for further expansion driven by private sector participation and rising exports. <o:p></o:p>

India's status as the world's fastest-growing major economy is strengthened by its investment-led growth narrative, as highlighted by top economic advisers. <o:p></o:p>

Anticipating sustained capital formation, economists foresee India's economy expanding by over 7 per cent in the fiscal year commencing in April, fostering optimism amidst evolving global economic dynamics.<o:p></o:p>

The surge in investment activity has not only bolstered economic fundamentals but has also catalysed significant market movements. <o:p></o:p>

Key indices such as the S&amp;P BSE Industrials Index have witnessed substantial gains, reflecting investor confidence in India's burgeoning industrial landscape.<o:p></o:p>

Amidst growing investor optimism, the collective market value of industrial players has surged, signalling robust growth prospects in key sectors.<o:p></o:p>

While India's current economic trajectory bears semblance to the resplendent growth witnessed in the mid-2000s, analysts have also issued caution against potential impediments that could impede the growth momentum. <o:p></o:p>

Labour shortages and logistical bottlenecks pose challenges to sustaining the growth cycle, warranting proactive measures to address emerging constraints. <o:p></o:p>

Nonetheless, Morgan Stanley remains optimistic about India's macroeconomic outlook, citing the enduring resilience of the investment-driven growth model.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

Echoing the vibrancy of India's economic boom during the mid-2000s, a recent report by Morgan Stanley highlights striking parallels between then and now, attributing the current surge to a strong investment trajectory.

Echoing the vibrancy of India's economic boom during the mid-2000s, a recent report by Morgan Stanley highlights striking parallels between then and now, attributing the current surge to a strong investment trajectory. Economists at Morgan Stanley highlight the resemblance between India's current growth cycle and the period from 2003 to 2007, characterised by an investment-driven expansion that propelled the economy to impressive heights. The report indicates the vital role of investment as a primary driver of India's economic resurgence, mirroring the trajectory witnessed during the mid-2000s. Notably, India's gross fixed capital formation has surged, signalling a sustained upswing in investment activity after a decade-long decline. The investment ratio, which plummeted to 28 per cent in 2021, is projected to climb to 36 per cent by 2027, indicating the buoyancy of India's economic landscape. According to Bloomberg, Morgan Stanley economists project a promising trajectory for India's investment cycle, brought by the prospects of robust capital expenditure, burgeoning exports, and enhanced macroeconomic stability. Despite concerns about sustainability, the report posits that India's current growth trajectory exhibits resilience, with ample scope for further expansion driven by private sector participation and rising exports. India's status as the world's fastest-growing major economy is strengthened by its investment-led growth narrative, as highlighted by top economic advisers. Anticipating sustained capital formation, economists foresee India's economy expanding by over 7 per cent in the fiscal year commencing in April, fostering optimism amidst evolving global economic dynamics. The surge in investment activity has not only bolstered economic fundamentals but has also catalysed significant market movements. Key indices such as the S&P BSE Industrials Index have witnessed substantial gains, reflecting investor confidence in India's burgeoning industrial landscape. Amidst growing investor optimism, the collective market value of industrial players has surged, signalling robust growth prospects in key sectors. While India's current economic trajectory bears semblance to the resplendent growth witnessed in the mid-2000s, analysts have also issued caution against potential impediments that could impede the growth momentum. Labour shortages and logistical bottlenecks pose challenges to sustaining the growth cycle, warranting proactive measures to address emerging constraints. Nonetheless, Morgan Stanley remains optimistic about India's macroeconomic outlook, citing the enduring resilience of the investment-driven growth model. (With inputs from Bloomberg)

India's economic surge echoes mid-2000s boom, says Morgan Stanley report

India is experiencing a remarkable surge in investment reminiscent of the mid-2000s when growth rates exceeded 8%. That's what economists at Morgan Stanley are saying.

Morgan Stanley bullish on India's economy

Investment banking giant Morgan Stanley is set to reduce its workforce by cutting hundreds of jobs in its wealth management unit, sources tell&nbsp;Reuters.<o:p></o:p>

The decision follows a trend among Wall Street firms over the past year, reflecting ongoing efforts to streamline operations and manage costs in the face of economic uncertainties.<o:p></o:p>

The job cuts in the wealth management unit, impacting less than 1 per cent of its employees, come at a time when optimism about a soft landing for the economy is growing. <o:p></o:p>

However, companies remain cautious and are actively seeking to trim expenses, particularly in light of uncertainties surrounding the trajectory of interest rate cuts by the US Federal Reserve.<o:p></o:p>

Morgan Stanley's wealth management unit, a key revenue generator for the bank, faced challenges in the last quarter with flat revenue compared to the previous year. <o:p></o:p>

The medium-term margin forecast for the business fell below analysts' expectations. <o:p></o:p>

Despite becoming a significant money-maker for the bank after major acquisitions like Eaton Vance and E*Trade, the wealth management unit's performance has come under scrutiny.<o:p></o:p>

An anonymous source highlighted that the unit played a crucial role in making Morgan Stanley less reliant on traditional revenue streams such as trading and investment banking, which can be volatile. <o:p></o:p>

The bank's new CEO, Ted Pick, who assumed leadership at the beginning of the year, is expected to implement one of the first significant moves with this workforce reduction. <o:p></o:p>

As of the end of last year, the bank had nearly 80,000 employees.<o:p></o:p>

The recent job cut plans align with the bank's strategic goal of reaching $10 trillion in assets under management, a target set by former CEO James Gorman. <o:p></o:p>

The wealth management unit, fuelled by major acquisitions, has been a cornerstone in diversifying Morgan Stanley's revenue streams.<o:p></o:p>

The Wall Street Journal was the first to report Morgan Stanley's intention to reduce jobs in its wealth management unit. <o:p></o:p>

However, the bank has declined to provide any official comment on the matter.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Investment banking giant Morgan Stanley is set to reduce its workforce by cutting hundreds of jobs in its wealth management unit, sources tell Reuters. The decision follows a trend among Wall Street firms over the past year, reflecting ongoing efforts to streamline operations and manage costs in the face of economic uncertainties.

Investment banking giant Morgan Stanley is set to reduce its workforce by cutting hundreds of jobs in its wealth management unit, sources tell Reuters. The decision follows a trend among Wall Street firms over the past year, reflecting ongoing efforts to streamline operations and manage costs in the face of economic uncertainties. The job cuts in the wealth management unit, impacting less than 1 per cent of its employees, come at a time when optimism about a soft landing for the economy is growing. However, companies remain cautious and are actively seeking to trim expenses, particularly in light of uncertainties surrounding the trajectory of interest rate cuts by the US Federal Reserve. Morgan Stanley's wealth management unit, a key revenue generator for the bank, faced challenges in the last quarter with flat revenue compared to the previous year. The medium-term margin forecast for the business fell below analysts' expectations. Despite becoming a significant money-maker for the bank after major acquisitions like Eaton Vance and E*Trade, the wealth management unit's performance has come under scrutiny. An anonymous source highlighted that the unit played a crucial role in making Morgan Stanley less reliant on traditional revenue streams such as trading and investment banking, which can be volatile. The bank's new CEO, Ted Pick, who assumed leadership at the beginning of the year, is expected to implement one of the first significant moves with this workforce reduction. As of the end of last year, the bank had nearly 80,000 employees. The recent job cut plans align with the bank's strategic goal of reaching $10 trillion in assets under management, a target set by former CEO James Gorman. The wealth management unit, fuelled by major acquisitions, has been a cornerstone in diversifying Morgan Stanley's revenue streams. The Wall Street Journal was the first to report Morgan Stanley's intention to reduce jobs in its wealth management unit. However, the bank has declined to provide any official comment on the matter. (With inputs from Reuters)

Morgan Stanley to trim hundreds of jobs in wealth management unit

James Gorman took home $37 million as compensation in 2023 - his last year as Morgan Stanley's CEO. His total pay package rose 17% from $31.5 million in 2022. Gorman's pay package was the highest for any major banker last year.

Morgan Stanley's James Gorman earns $37 million in 2023

Top leaders from global banking institutions on Tuesday expressed their apprehension that the next financial crisis could originate from escalating geopolitical tensions and the persistent spectre of regulatory tightening. &nbsp;

Reuters reported that this shared concern emerged during the Global Financial Leaders Investment Summit, hosted by the Hong Kong Monetary Authority, where more than a dozen prominent executives discussed the potential challenges faced by the financial sector.&nbsp;

Morgan Stanley's Chairman and CEO, James Gorman, voiced his opinion on the possible trigger for the next global financial crisis. He noted that the threat is likely to emanate from the geopolitical or political realm, although he did not provide specific details.

Gorman's remarks come amid ongoing conflicts such as the Israel-Gaza situation and the Russia-Ukraine war, along with simmering tensions between the United States and China. These factors contribute to heightened uncertainty in the global economic landscape.&nbsp;

Deutsche Bank's CEO, Christian Sewing, added to the conversation, highlighting the current resilience of the markets in the face of global events. However, he expressed concern that a sudden escalation in geopolitical tensions could disrupt this calmness and potentially lead to a market event. The unpredictability and swiftness of such developments remain a key source of worry for banking leaders.&nbsp;

Reflecting on past financial crises, the executives discussed the actions taken by central banks in response to the 2008-2009 global banking crisis. These institutions worked to prevent a reoccurrence, particularly in the face of significant cash withdrawals from regional U.S. banks. Swiss authorities also played a critical role in facilitating UBS's rescue of Credit Suisse, an event praised by the European Central Bank as instrumental in reassuring markets. Despite these measures, uncertainties persist, with ongoing geopolitical tensions further complicating the macroeconomic outlook.&nbsp;

In a notable united front, the global banking leaders also used the summit as an opportunity to express their concerns regarding stringent banking regulations. They criticised the "Basel Endgame," a comprehensive overhaul that would require banks to set aside larger capital reserves to mitigate risks, a proposal that was brought forward in July. &nbsp;

Goldman Sachs' Chief Executive, David Solomon, was vocal in his opposition to the rules, suggesting that they go "way too far". He expressed worries about the economic impact of these measures, stating that they could hinder economic activities and growth.&nbsp;

Within the U.S., regulatory bodies have proposed stricter capital requirements for large banks, in response to runs on smaller banks earlier this year. The banking industry has contested the need for substantial capital increases. &nbsp;

UBS Group Chairman, Colm Kelleher, suggested that the next financial crisis might emerge from the shadow banking sector, where a growing portion of global assets is managed. Kelleher emphasised the need to address the size of large banks, as the pressure on the system could lead to less competitive players falling back, making it challenging to predict the nature of the next crisis.&nbsp;

(Inputs from Reuters)

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Top leaders from global banking institutions on Tuesday expressed their apprehension that the next financial crisis could originate from escalating geopolitical tensions and the persistent spectre of regulatory tightening.

Top leaders from global banking institutions on Tuesday expressed their apprehension that the next financial crisis could originate from escalating geopolitical tensions and the persistent spectre of regulatory tightening. Reuters reported that this shared concern emerged during the Global Financial Leaders Investment Summit, hosted by the Hong Kong Monetary Authority, where more than a dozen prominent executives discussed the potential challenges faced by the financial sector. Morgan Stanley's Chairman and CEO, James Gorman, voiced his opinion on the possible trigger for the next global financial crisis. He noted that the threat is likely to emanate from the geopolitical or political realm, although he did not provide specific details. Gorman's remarks come amid ongoing conflicts such as the Israel-Gaza situation and the Russia-Ukraine war, along with simmering tensions between the United States and China. These factors contribute to heightened uncertainty in the global economic landscape. Deutsche Bank's CEO, Christian Sewing, added to the conversation, highlighting the current resilience of the markets in the face of global events. However, he expressed concern that a sudden escalation in geopolitical tensions could disrupt this calmness and potentially lead to a market event. The unpredictability and swiftness of such developments remain a key source of worry for banking leaders. Reflecting on past financial crises, the executives discussed the actions taken by central banks in response to the 2008-2009 global banking crisis. These institutions worked to prevent a reoccurrence, particularly in the face of significant cash withdrawals from regional U.S. banks. Swiss authorities also played a critical role in facilitating UBS's rescue of Credit Suisse, an event praised by the European Central Bank as instrumental in reassuring markets. Despite these measures, uncertainties persist, with ongoing geopolitical tensions further complicating the macroeconomic outlook. In a notable united front, the global banking leaders also used the summit as an opportunity to express their concerns regarding stringent banking regulations. They criticised the "Basel Endgame," a comprehensive overhaul that would require banks to set aside larger capital reserves to mitigate risks, a proposal that was brought forward in July. Goldman Sachs' Chief Executive, David Solomon, was vocal in his opposition to the rules, suggesting that they go "way too far". He expressed worries about the economic impact of these measures, stating that they could hinder economic activities and growth. Within the U.S., regulatory bodies have proposed stricter capital requirements for large banks, in response to runs on smaller banks earlier this year. The banking industry has contested the need for substantial capital increases. UBS Group Chairman, Colm Kelleher, suggested that the next financial crisis might emerge from the shadow banking sector, where a growing portion of global assets is managed. Kelleher emphasised the need to address the size of large banks, as the pressure on the system could lead to less competitive players falling back, making it challenging to predict the nature of the next crisis. (Inputs from Reuters) WATCH WION LIVE HERE

Global banking chiefs warn of geopolitical uncertainty and regulatory concerns

Morgan Stanley has just released its third-quarter earnings report, and it's not good news for the bank. Profits have taken a hit and shares are down, primarily due to sluggish deal making and concerns over the CEO succession.

Morgan Stanley's Q3 profit hit by CEO succession delays

Morgan Stanley has faced a setback in its third-quarter profits, primarily due to sluggish dealmaking and a discouraging performance in investment banking. The results sent the bank's shares plummeting by 6.5 per cent, further exacerbated by smaller inflows into the wealth management division and the absence of announcements regarding the CEO succession.&nbsp;

During the third quarter, Morgan Stanley saw a 27 per cent drop in investment banking revenues compared to the same period last year. Additionally, trading activity faced a downturn as geopolitical risk escalated, and the Federal Reserve implemented aggressive interest rate hikes. The bank underperformed, with global investment banking fees falling by 17 per cent in the quarter, according to Dealogic data.&nbsp;

The wealth management division also faced challenges, with net new assets shrinking to $35.7 billion, a significant decline from the $64.8 billion reported a year earlier. The wealth management figures and the growth outlook set by CEO James Gorman left investors concerned.&nbsp;

"The market was disappointed with wealth management and investment banking, divisions that have represented tailwinds to Morgan Stanley," Reuters quoted Jason Ware, Chief Investment Officer at Albion Financial Group as saying.&nbsp;

Rising interest rates were identified as one of the key factors affecting the wealth division and trading unit. As interest rates increased, clients chose to invest in money market funds rather than wealth management portfolios. According to Reuters, CEO James Gorman highlighted that clients maintained a cash position of approximately 23 per cent, a trend he anticipates will change as interest rates recede in the coming years.&nbsp;

Despite the challenges faced, Morgan Stanley reported a profit of $2.4 billion, representing a 9 per cent drop, equating to $1.38 per diluted share. Interestingly, this was a smaller decline than what analysts had predicted, with an expected $1.28 per share, according to LSEG IBES data.&nbsp;

However, Morgan Stanley's share performance in 2023 has not been very encouraging, with a 12 per cent decline so far, while the S&amp;P 500 bank index dropped 11 per cent.&nbsp;

Kenneth Leon, the research director at CFRA Research, adjusted the bank's 12-month price target to $90 a share, lowering it by $6, though maintaining a 'buy' rating.&nbsp;

Reuters cited analysts at Evercore, who expressed dissatisfaction with the lack of updates regarding the long-anticipated CEO succession at Morgan Stanley. The absence of information was viewed as a mistake by the Board, as it could potentially raise concerns and divisions among stakeholders.&nbsp;

CEO James Gorman, who has been at the helm of the Wall Street giant since 2010, announced in May his intention to step down within a year. On Wednesday, he noted that the bank was nearing an announcement, providing some reassurance to investors.&nbsp;

The leading candidates for the CEO position include co-presidents Ted Pick and Andy Saperstein, who head institutional securities and wealth management, respectively. Dan Simkowitz, the head of asset management, is also under consideration, as reported by Reuters.&nbsp;

Regarding investment banking, Gorman expects most of the activity to materialise next year, despite recent improvements in M&amp;A and capital markets transactions. Notably, the bank's revenue in fixed income underwriting decreased, contrasting with the performance of some rivals.&nbsp;

Morgan Stanley also allocated $134 million for provisions for credit losses in the third quarter, a substantial increase from $35 million in the same period the previous year. This surge was primarily driven by deteriorating conditions in commercial real estate (CRE), including provisions to cover losses on undisclosed specific loans.&nbsp;

(With inputs from Reuters)&nbsp;

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Morgan Stanley has faced a setback in its third-quarter profits, primarily due to sluggish dealmaking and a discouraging performance in investment banking. The results sent the bank's shares plummeting by 6.

Morgan Stanley has faced a setback in its third-quarter profits, primarily due to sluggish dealmaking and a discouraging performance in investment banking. The results sent the bank's shares plummeting by 6.5 per cent, further exacerbated by smaller inflows into the wealth management division and the absence of announcements regarding the CEO succession. During the third quarter, Morgan Stanley saw a 27 per cent drop in investment banking revenues compared to the same period last year. Additionally, trading activity faced a downturn as geopolitical risk escalated, and the Federal Reserve implemented aggressive interest rate hikes. The bank underperformed, with global investment banking fees falling by 17 per cent in the quarter, according to Dealogic data. The wealth management division also faced challenges, with net new assets shrinking to $35.7 billion, a significant decline from the $64.8 billion reported a year earlier. The wealth management figures and the growth outlook set by CEO James Gorman left investors concerned. "The market was disappointed with wealth management and investment banking, divisions that have represented tailwinds to Morgan Stanley," Reuters quoted Jason Ware, Chief Investment Officer at Albion Financial Group as saying. Rising interest rates were identified as one of the key factors affecting the wealth division and trading unit. As interest rates increased, clients chose to invest in money market funds rather than wealth management portfolios. According to Reuters, CEO James Gorman highlighted that clients maintained a cash position of approximately 23 per cent, a trend he anticipates will change as interest rates recede in the coming years. Despite the challenges faced, Morgan Stanley reported a profit of $2.4 billion, representing a 9 per cent drop, equating to $1.38 per diluted share. Interestingly, this was a smaller decline than what analysts had predicted, with an expected $1.28 per share, according to LSEG IBES data. However, Morgan Stanley's share performance in 2023 has not been very encouraging, with a 12 per cent decline so far, while the S&P 500 bank index dropped 11 per cent. Kenneth Leon, the research director at CFRA Research, adjusted the bank's 12-month price target to $90 a share, lowering it by $6, though maintaining a 'buy' rating. Reuters cited analysts at Evercore, who expressed dissatisfaction with the lack of updates regarding the long-anticipated CEO succession at Morgan Stanley. The absence of information was viewed as a mistake by the Board, as it could potentially raise concerns and divisions among stakeholders. CEO James Gorman, who has been at the helm of the Wall Street giant since 2010, announced in May his intention to step down within a year. On Wednesday, he noted that the bank was nearing an announcement, providing some reassurance to investors. The leading candidates for the CEO position include co-presidents Ted Pick and Andy Saperstein, who head institutional securities and wealth management, respectively. Dan Simkowitz, the head of asset management, is also under consideration, as reported by Reuters. Regarding investment banking, Gorman expects most of the activity to materialise next year, despite recent improvements in M&A and capital markets transactions. Notably, the bank's revenue in fixed income underwriting decreased, contrasting with the performance of some rivals. Morgan Stanley also allocated $134 million for provisions for credit losses in the third quarter, a substantial increase from $35 million in the same period the previous year. This surge was primarily driven by deteriorating conditions in commercial real estate (CRE), including provisions to cover losses on undisclosed specific loans. (With inputs from Reuters) WATCH WION LIVE HERE

Morgan Stanley's Q3 profit decline amid weak investment banking numbers

After Morgan Stanley predicted that Tesla’s Dojo supercomputer would boost the electric vehicle maker’s market value by over $600 billion by accelerating its entry into robotaxis and software services, shares of Tesla rose by 6 per cent on Monday.

The world’s most valuable car manufacturer, Tesla, began producing Dojo in July and expects to spend more than $1 billion on it over the course of the following year. Dojo will train AI models for self-driving cars.

According to the analysts at Morgan Stanley led by Adam Jones, Dojo can open up new addressable markets that “extend well beyond selling vehicles at a fixed price”.&nbsp;

In a note drafted on Sunday, Adam Jones said, “If Dojo can help make cars 'see' and 'react,' what other markets could open up? Think of any device at the edge with a camera that makes real-time decisions based on its visual field.”

Ferrari's U.S.-listed shares were replaced by Tesla's stock as the Wall Street brokerage raised it from "equal-weight" to "overweight" and designated it as the "top pick."

According to LSEG data, Morgan Stanley increased its 12-to-18-month price target on Tesla's shares by 60 per cent to $400, making it the highest among Wall Street brokerages. At this&nbsp;price, according to Morgan Stanley’s estimates, the EV manufacturer would have a market value of nearly $1.39 trillion.

Based on the stock’s closing value of $248.5 on Friday, this is almost 76 per cent greater than Tesla's market worth of about $789 billion. On Monday, the stock increased by almost 5.7 per cent to $262.70.

Jonas anticipates Dojo to be the programme and service that adds the most value.

Morgan Stanley increased its revenue forecast for Tesla's network services division from $157 billion to $335 billion in 2040.

By 2040, nearly doubling from 2030, Jonas projects the segment to provide more than 60 per cent&nbsp;of Tesla's core earnings.

“This increase is largely driven by the emerging opportunity we see in third-party fleet licensing, increased ARPU (average monthly revenue per user),” Reuters quoted the analyst as saying.

As per the LSEG statistics, Tesla's 12-month forward price-to-earnings ratio of 57.9 is far higher than those of venerable automakers Ford at 6.31 and General Motors at 4.56.

(With inputs from Reuters)

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After Morgan Stanley predicted that Tesla’s Dojo supercomputer would boost the electric vehicle maker’s market value by over $600 billion by accelerating its entry into robotaxis and software services, shares of Tesla rose by 6 per cent on Monday.

After Morgan Stanley predicted that Tesla’s Dojo supercomputer would boost the electric vehicle maker’s market value by over $600 billion by accelerating its entry into robotaxis and software services, shares of Tesla rose by 6 per cent on Monday. The world’s most valuable car manufacturer, Tesla, began producing Dojo in July and expects to spend more than $1 billion on it over the course of the following year. Dojo will train AI models for self-driving cars. According to the analysts at Morgan Stanley led by Adam Jones, Dojo can open up new addressable markets that “extend well beyond selling vehicles at a fixed price”. In a note drafted on Sunday, Adam Jones said, “If Dojo can help make cars 'see' and 'react,' what other markets could open up? Think of any device at the edge with a camera that makes real-time decisions based on its visual field.” Ferrari's U.S.-listed shares were replaced by Tesla's stock as the Wall Street brokerage raised it from "equal-weight" to "overweight" and designated it as the "top pick." According to LSEG data, Morgan Stanley increased its 12-to-18-month price target on Tesla's shares by 60 per cent to $400, making it the highest among Wall Street brokerages. At this price, according to Morgan Stanley’s estimates, the EV manufacturer would have a market value of nearly $1.39 trillion. Based on the stock’s closing value of $248.5 on Friday, this is almost 76 per cent greater than Tesla's market worth of about $789 billion. On Monday, the stock increased by almost 5.7 per cent to $262.70. Jonas anticipates Dojo to be the programme and service that adds the most value. Morgan Stanley increased its revenue forecast for Tesla's network services division from $157 billion to $335 billion in 2040. By 2040, nearly doubling from 2030, Jonas projects the segment to provide more than 60 per cent of Tesla's core earnings. “This increase is largely driven by the emerging opportunity we see in third-party fleet licensing, increased ARPU (average monthly revenue per user),” Reuters quoted the analyst as saying. As per the LSEG statistics, Tesla's 12-month forward price-to-earnings ratio of 57.9 is far higher than those of venerable automakers Ford at 6.31 and General Motors at 4.56. (With inputs from Reuters) WATCH WION LIVE HERE

Dojo supercomputer to boost Tesla’s valuation by $600 billion: Morgan Stanley

Morgan Stanley estimates that the dojo supercomputer may increase Tesla’s market worth by as much as 500 billion dollars. This is because of increased demand for the company's robo-taxi and network services.

Morgan Stanley bullish on Tesla's dojo sees $500 bn upside

Wealthy clients going to a Morgan Stanley financial adviser to discuss their investments may have a different sort of experience in the future: having a chatbot listen to their conversation.

Morgan Stanley to launch AI chatbot to woo wealthy

After Morgan Stanley, another global financial giant endorsed India's economic growth story. S&P Global on Thursday said India can grow 6.7% every year through to March 2031. The financial information & analytics giant added that India has the opportunity to ''capitalise on the moment", despite short-term challenges from rate hikes and a sharp global slowdown.

S&P global bets big on India growth story

Brokerage firm Morgan Stanley on Wednesday updated India’s rating to ‘overweight’, saying that the country is at the start of a long wave boom. The firm added that supportive foreign inflows, macro stability and positive earnings outlook will help India outperform China, which has been downgraded to 'equal weight'.&nbsp;

In simple words, an 'overweight' rating indicates that the brokerage firm anticipates India to do better in the future.

According to the brokerage firm, India is now the top ranked, most-preferred market among emerging markets (EMs), rising from the sixth position.&nbsp;

The latest upgrade comes just four months after the firm raised India from 'underweight' to 'equal weight', citing a decline in valuation premium and a stable economy.

Within the Asia Pacific basket, India has&nbsp;now replaced Japan as the primary 'overweight' market for Morgan Stanley.&nbsp;

“We upgrade India to overweight for secular leadership. We see a secular trend towards sustained superior USD Earnings Per Share&nbsp;growth versus Emerging Markets over the cycle," the note read. It added that&nbsp;a young demographic profile is supporting equity inflows into India.

The Morgan Stanley note added that India’s future resembles China’s history to a large extent. In comparison to India’s 6.5 per cent GDP growth, the brokerage anticipates China’s GDP to expand by only 3.9 per cent by the end of the decade.

"We think returning India to an 'overweight' rating and downgrading China to 'equal weight'&nbsp;is warranted," analysts said. They were referring to the Indian markets' outperformance over China as a sign of a structural breakout in favour of India.

(With inputs from Reuters)

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Brokerage firm Morgan Stanley on Wednesday updated India’s rating to ‘overweight’, saying that the country is at the start of a long wave boom. The firm added that supportive foreign inflows, macro stability and positive earnings outlook will help India outperform China, which has been downgraded to 'equal weight'.

Brokerage firm Morgan Stanley on Wednesday updated India’s rating to ‘overweight’, saying that the country is at the start of a long wave boom. The firm added that supportive foreign inflows, macro stability and positive earnings outlook will help India outperform China, which has been downgraded to 'equal weight'. In simple words, an 'overweight' rating indicates that the brokerage firm anticipates India to do better in the future. According to the brokerage firm, India is now the top ranked, most-preferred market among emerging markets (EMs), rising from the sixth position. The latest upgrade comes just four months after the firm raised India from 'underweight' to 'equal weight', citing a decline in valuation premium and a stable economy. Within the Asia Pacific basket, India has now replaced Japan as the primary 'overweight' market for Morgan Stanley. “We upgrade India to overweight for secular leadership. We see a secular trend towards sustained superior USD Earnings Per Share growth versus Emerging Markets over the cycle," the note read. It added that a young demographic profile is supporting equity inflows into India. The Morgan Stanley note added that India’s future resembles China’s history to a large extent. In comparison to India’s 6.5 per cent GDP growth, the brokerage anticipates China’s GDP to expand by only 3.9 per cent by the end of the decade. "We think returning India to an 'overweight' rating and downgrading China to 'equal weight' is warranted," analysts said. They were referring to the Indian markets' outperformance over China as a sign of a structural breakout in favour of India. (With inputs from Reuters) WATCH WION LIVE HERE

Morgan Stanley upgrades India’s rating to ‘overweight’, downgrades China

The India story has got a big thumbs up this time from the US brokerage giant Morgan Stanley which has upgraded India's rating to overweight.

Morgan Stanley bullish on Indian markets

Here, we bring you a quick round-up of all the latest news and top headlines from all across the globe: As foreign investors continue to increase their bets on India a resilient domestic economy and relatively cheap valuations are helping the bulls to stay in control. Morgan Stanley analysts have picked Apple as their top stock for the rest of 2023.

India's economic boom to drive Apple stock

Morgan Stanley's board will focus on the selection of CEO James Gorman's successor at its summer and fall meetings, a person familiar with the situation said, while the outgoing boss looks to clear the decks by resolving major regulatory matters.

Morgan Stanley board considers next CEO while Gorman clears the decks

It's a tale of unexpected financial triumph as Ukrainian debt warrants have taken the investment world by storm, delivering staggering returns and capturing the attention of major players in the market. Held by Morgan Stanley investment management, these exotic warrants have experienced an astonishing surge in value over a short period.

Ukraine’s debt warrants outshine emerging markets

Morgan Stanley, in its latest report, hailed the India's Narendra Modi-led government and said that in a short span of 10 years, India had gained positions in the world order with significant positive consequences for the macro and market outlook. The investment advisory firm predicted that India will emerge as a key driver for Asia and drive a fifth of global growth in the next decade.

Morgan Stanley's glowing report on India | World Business Watch

As India’s Prime Minister Narendra Modi celebrates the ninth anniversary of his government in New Delhi this month, a report card published by US financial services firm Morgan Stanley is sure to swell his pride. The report, authored by Morgan Stanley India's Chief Economist and Managing Director Ridham Desai, throws light on 10 significant and transformational changes India has witnessed over the past decade, majorly under the watch of PM Modi’s administration, who rose to power in 2014.&nbsp;

The report titled, 'India Equity Strategy and Economics: How India Has Transformed in Less than a Decade', lays out how path-breaking economic initiatives taken by the Modi administration have improved India’s micro and macro outlook in a span of 10 years. "This India is different from what it was in 2013," the report said.

“We run into significant scepticism about India, particularly with overseas investors, who say that India has not delivered its potential (despite it being the second-fastest-growing economy and among the top-performing stock markets over the past 25 years) and that equity valuations are too rich,” the report, released on Monday, noted.

“However, such a view ignores the significant changes that have taken place in India, especially since 2014,” it added.

<h2>Morgan Stanley’s prediction about India</h2>

Based on its analysis of the Indian economy, Stanley in its report also made predictions for India, both with respect to domestic policies and international dynamics. The report noted that the manufacturing sector will lead the GDP growth in India for the next seven years, with exports projected to witness a steep rise.

The report said, “We expect a new cycle in manufacturing and capex [capital expenditure], as we estimate the share of both to rise in GDP [gross domestic product] by approximately 5 percentage points by 2031. We estimate that India’s export market share will rise to 4.5 per cent by 2031, nearly 2x [double] from 2021 levels, with broad-based gains across goods and services exports.”

<h2>Morgan Stanley’s thumbs up to ‘Atmanirbhar Bharat’</h2>

Self-reliant&nbsp;or ‘Atmanirbhar’ India is one of the key economic initiatives that the government of India has undertaken over the last five years. It aims to make India less&nbsp;dependent on international factors while boosting the manufacturing sector led by domestic demand.&nbsp;

Watch:&nbsp;India to become $ 10 trillion economy by 2035, forecasts CEBR

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Now, Morgan Stanley’s report has noted that the Indian economy is becoming less susceptible to factors outside of its jurisdiction. For instance, India’s reliance on global capital market flows has reduced. Also, India’s sensitivity to shocks in the US market, like rate change by the Fed or recession, seems to be fading. Simply put, the Indian economy is well insulated against international risks emerging from the West.

<h2>10 changes in the Indian economy</h2>

The report has highlighted the following ten major changes the Indian economy has gone through over the past 10 years.&nbsp;

1. Supply-side Policy Reforms 
2. Formalisation of the Economy 
3. Real Estate (Regulation and Development) Act 
4. Digitalising Social Transfers 
5. Insolvency and Bankruptcy Code 
6. Flexible Inflation Targeting 
7. Focus on FDI 
8. India's 401(k) Moment 
9. Government Support for Corporate Profits 
10. MNC Sentiment at Multiyear High

The report emphasises that the Indian government's decision to reduce corporate tax rates in 2019 has placed India "at par with peers" such as China, Indonesia, South Korea, Malaysia, Japan, Thailand, Vietnam, and Singapore. This move has enhanced India's competitiveness in the global market and attracted more investment to the country.

One of the remarkable achievements highlighted in the report is the accelerated pace of infrastructure creation over the past eight years compared to the previous period. For instance, the construction of 53,700 km of national highways between 2014-15 and 2022-23 far exceeds the 25,700 km built between 2005-06 and 2013-14. This expansion of the road network is crucial for improving connectivity, fostering trade, and driving economic growth.

The report also highlights the significant increase in the broadband consumer base over the past eight years. Approximately 771.3 million people gained access to broadband services, a substantial rise compared to the 58.9 million in the previous eight years.

India's commitment to renewable energy has been commendable, as indicated by the report. Between 2014-15 and 2022-23, the country installed a total of 95.7 GW of renewable energy capacity, a significant leap from the 25.7 GW installed between 2005-06 and 2013-14.

The report also highlights the consistent increase in tax collections under the Goods and Services Tax (GST), indicating a significant formalisation of the economy. Additionally, digital transactions as a percentage of GDP have skyrocketed from 4.4 per cent in 2015-16 to an impressive 76.1 per cent in 2022-23.

<a href="https://www.wionews.com/business-economy/indias-growth-in-2022-23-estimated-at-72-says-government-598810">Also Read |&nbsp;India: GDP grows 6.1% in March quarter, 7.2% in 2022-23</a>

Reforms such as the Real Estate (Regulation and Development) Act&nbsp;of 2016 have also played a crucial role in revitalising the real estate sector. The report showcases a substantial rise in new property launches and sales, with approximately 75,000 units and 60,000 units, respectively, recorded in the first quarter of 2022-23. This represents significant growth compared to around 50,000 new launches and 41,000 new sales in the second quarter of 2014-15.

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As India’s Prime Minister Narendra Modi celebrates the ninth anniversary of his government in New Delhi this month, a report card published by US financial services firm Morgan Stanley is sure to swell his pride.

As India’s Prime Minister Narendra Modi celebrates the ninth anniversary of his government in New Delhi this month, a report card published by US financial services firm Morgan Stanley is sure to swell his pride. The report, authored by Morgan Stanley India's Chief Economist and Managing Director Ridham Desai, throws light on 10 significant and transformational changes India has witnessed over the past decade, majorly under the watch of PM Modi’s administration, who rose to power in 2014. The report titled, 'India Equity Strategy and Economics: How India Has Transformed in Less than a Decade', lays out how path-breaking economic initiatives taken by the Modi administration have improved India’s micro and macro outlook in a span of 10 years. "This India is different from what it was in 2013," the report said. “We run into significant scepticism about India, particularly with overseas investors, who say that India has not delivered its potential (despite it being the second-fastest-growing economy and among the top-performing stock markets over the past 25 years) and that equity valuations are too rich,” the report, released on Monday, noted. “However, such a view ignores the significant changes that have taken place in India, especially since 2014,” it added. Morgan Stanley’s prediction about India Based on its analysis of the Indian economy, Stanley in its report also made predictions for India, both with respect to domestic policies and international dynamics. The report noted that the manufacturing sector will lead the GDP growth in India for the next seven years, with exports projected to witness a steep rise. The report said, “We expect a new cycle in manufacturing and capex [capital expenditure], as we estimate the share of both to rise in GDP [gross domestic product] by approximately 5 percentage points by 2031. We estimate that India’s export market share will rise to 4.5 per cent by 2031, nearly 2x [double] from 2021 levels, with broad-based gains across goods and services exports.” Morgan Stanley’s thumbs up to ‘Atmanirbhar Bharat’ Self-reliant or ‘Atmanirbhar’ India is one of the key economic initiatives that the government of India has undertaken over the last five years. It aims to make India less dependent on international factors while boosting the manufacturing sector led by domestic demand. Watch: India to become $ 10 trillion economy by 2035, forecasts CEBR × Now, Morgan Stanley’s report has noted that the Indian economy is becoming less susceptible to factors outside of its jurisdiction. For instance, India’s reliance on global capital market flows has reduced. Also, India’s sensitivity to shocks in the US market, like rate change by the Fed or recession, seems to be fading. Simply put, the Indian economy is well insulated against international risks emerging from the West. 10 changes in the Indian economy The report has highlighted the following ten major changes the Indian economy has gone through over the past 10 years. 1. Supply-side Policy Reforms 2. Formalisation of the Economy 3. Real Estate (Regulation and Development) Act 4. Digitalising Social Transfers 5. Insolvency and Bankruptcy Code 6. Flexible Inflation Targeting 7. Focus on FDI 8. India's 401(k) Moment 9. Government Support for Corporate Profits 10. MNC Sentiment at Multiyear High The report emphasises that the Indian government's decision to reduce corporate tax rates in 2019 has placed India "at par with peers" such as China, Indonesia, South Korea, Malaysia, Japan, Thailand, Vietnam, and Singapore. This move has enhanced India's competitiveness in the global market and attracted more investment to the country. One of the remarkable achievements highlighted in the report is the accelerated pace of infrastructure creation over the past eight years compared to the previous period. For instance, the construction of 53,700 km of national highways between 2014-15 and 2022-23 far exceeds the 25,700 km built between 2005-06 and 2013-14. This expansion of the road network is crucial for improving connectivity, fostering trade, and driving economic growth. The report also highlights the significant increase in the broadband consumer base over the past eight years. Approximately 771.3 million people gained access to broadband services, a substantial rise compared to the 58.9 million in the previous eight years. India's commitment to renewable energy has been commendable, as indicated by the report. Between 2014-15 and 2022-23, the country installed a total of 95.7 GW of renewable energy capacity, a significant leap from the 25.7 GW installed between 2005-06 and 2013-14. The report also highlights the consistent increase in tax collections under the Goods and Services Tax (GST), indicating a significant formalisation of the economy. Additionally, digital transactions as a percentage of GDP have skyrocketed from 4.4 per cent in 2015-16 to an impressive 76.1 per cent in 2022-23. Also Read | India: GDP grows 6.1% in March quarter, 7.2% in 2022-23 Reforms such as the Real Estate (Regulation and Development) Act of 2016 have also played a crucial role in revitalising the real estate sector. The report showcases a substantial rise in new property launches and sales, with approximately 75,000 units and 60,000 units, respectively, recorded in the first quarter of 2022-23. This represents significant growth compared to around 50,000 new launches and 41,000 new sales in the second quarter of 2014-15. WATCH WION LIVE HERE ×

Explained: This is how 10 transformational changes in 10 years made India 'different' 

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