Mumbai, March 4 || Indian stock markets may look weak on the surface, but the current phase offers a strong buying opportunity for long-term investors, a report said on Wednesday.
The global brokerage Morgan Stanley believed that structural fundamentals of the Indian economy remain intact and earnings growth is set to improve further in 2026, even as markets struggle with near-term volatility.
The report said Indian equities are reacting more sharply to negative news than to positive developments, creating doubts among investors about possible structural problems.
However, Morgan Stanley disagrees with this view and sees the weakness as a result of market positioning and technical factors rather than any deep-rooted economic trouble.
According to the report, corporate earnings growth is already turning after a six-quarter slowdown and is likely to accelerate into 2026.
This improvement is expected to be supported by reflationary policies from the Reserve Bank of India and the government.
Rate cuts, bank deregulation, liquidity infusion, continued capital expenditure, tax relief measures and a relatively growth-supportive Budget are all contributing to a more supportive macroeconomic environment.