"We think the soft growth patch is behind us and, if global cues do not surprise negatively, India should resume its outperformance to EM in the coming months," analyst at MS said. India to be one of the best-performing EMs, citing strong macroeconomic stability, forecasted earnings growth of 18-20% annually over the next four to five years, and robust domestic capital inflows. Morgan Stanley sees 19% upside in the BSE Sensex by December 2025, assuming stable domestic growth, no U.S. recession, and moderate oil prices. The firm favors cyclical stocks over defensives and small/mid-cap stocks over large caps, with overweight positions in financials, consumer discretionary, industrials, and technology.