Nifty In 2025: Morgan Stanley highlights the sectors it bets on and the ones to avoid – CNBC TV18
But Morgan Stanley is of the view that this aging bull market still has more legs to run ahead. What the note says is that the bull market has now overtaken the 2003 to 2008 period in terms of length, although the returns of this bull market is just a third of what the market had seen during the 2003 to 2008 period.
On the earnings front, although the quarters recently have been disappointing, but Morgan Stanley says that the earning cycle is midway, and the valuations, too, are not rich for our markets.
Now, why can the bull market last longer? According to Morgan Stanley, they’re saying that the private investment cycle is picking up, and that can extend the earnings cycle, which will further make valuations attractive.
Going forward, the domestic inflows that have supported the markets through the year, that not likely to fade away anytime soon as well.
Morgan Stanley’s note further said they that there are prospects of more free trade agreements rupee trade, and that will further add a boost to the growth estimates as well.
The per capita energy consumption, according to Morgan Stanley, is likely to increase in the next decade, and they see an upside to both earnings as well as valuations going forward.
So, what you should own and shouldn’t own?
Morgan Stanley believes that you should own financials, consumer cyclicals and industrial cyclicals in the next leg of this bull market. And what you shouldn’t own includes the likes of staples, utilities, healthcare and telecom.
