If the Indian election result is decisive, utilities, SOE banks, energy, industrials and materials could gain the most.
Credit spreads would likely tighten on the potential for a better BoP, SOE bank recapitalization
and a more stable sovereign ratings outlook. The INR
could appreciate another 7-8%.
In contrast, if the elections produce a fragmented coalition government,
the equity market could revert to quality stocks, and technology and pharmaceuticals could be the major outperformers and the INR could lose more than 10%.
Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As
a result, investors should be aware that the firm may have a conflict of interest that could affect the
objectivity of Morgan Stanley Research.
Investors should consider Morgan Stanley Research as only a
single factor in making their investment decision.
Morgan Stanley India Company
Private Limited+
Ridham Desai
Ridham.Desai@morganstanley.com
+91 22 6118 2222
