Morgan Stanley Bullish on Indian Equities Post-Budget 2026, Overweights Key Sectors

• Morgan Stanley maintains an overweight stance on Indian equities after Union Budget 2026, citing growth-supportive measures.
• The investment bank overweights financials, consumer discretionary, and industrials, expecting them to benefit from capital spending.
• Budget 2026 signals a policy shift towards technology-led growth and advanced manufacturing, with a focus on semiconductors.
• Morgan Stanley notes the government's fiscal deficit target of 4.3% for FY27 aligns with its own estimate, indicating fiscal discipline.
• The budget's growth-oriented policies and fiscal consolidation create a favorable environment, improving earnings visibility for domestic sectors.

Why It Matters: Morgan Stanley remains positive on Indian equities post-Budget 2026, favoring financials, consumer discretionary, and industrials.