JOIN USDespite several negatives that dampened Indian stock prices, global brokerage firm Morgan Stanley has come out with a report recommending investors to buy equities.
“What we see is that stocks are cheap and that seems like a good reason to start backing up the truck and loading it with equities,” Morgan Stanley, said in its latest India strategy report published in June.
Morgan Stanley advised investors saying, “Buy stocks with attractive valuations, reasonable growth prospects, and good management and watch your portfolio grow.”
Further, the brokerage firm said that in 2002-03, the economy looked like it had almost stalled.
The investment cycle was dead. Stocks had done nothing but go down for more than three years. Valuations were cheap, but the earnings outlook was fuzzy. It looks quite similar in 2012.
However, the stock-picking opportunity seems as good as it did in 2003 even as the macro economy and earning projections appear as bad, it noted.
In 2012, India’s growth mix includes strong consumption and, thus, a current account deficit, the report said.