Morgan Stanley’s top picks: Adani Power, Trent, among 10 stocks rated ‘overweight’ by Wall Street giant

Wall Street major Morgan Stanley in its latest strategy note suggests that India could be in the midst of a multi quarter growth upcycle. Given supportive equity valuations, we expect equity market performance to improve considerably in the coming months. It does not expect a bunching of issuances, with retail demand continuing to stay ahead of supply. Sensex earnings are expected to compound at 16% annually through F2029. Here are 10 stocks the brokerage is bullish on.

Maruti Suzuki India features on the focus list with an overweight rating. The stock has fallen 13% in the last 12-months, underperforming the MSCI India index by 9%.

Trent carries an overweight rating in the consumer discretionary space. The stock has delivered a negative 47% return over the past 12 months, underperforming MSCI India by 45%.

Lenskart Solutions is among the focus list picks with an overweight rating. The stock was priced at Rs 524 and has a market capitalization of $10 billion, with average daily traded value of $19 million.

Varun Beverages, a consumer staples company, is rated overweight. The stock has generated a negative 17% return over the last year, underperforming MSCI India by 17%.

Bajaj Finance remains an overweight-rated financial stock. It has delivered a strong gain of 19% over the past 12 months, outperforming the MSCI India by 25%.

ICICI Bank is another overweight-rated financial sector pick. The stock has recorded a 2% gain in the past year, outperforming the MSCI India by 8%.

Industrial major Larsen & Toubro features on the focus list with an overweight rating. The stock has posted a 11% gain over the last 12 months, outperforming MSCI India by 17%.

UltraTech Cement, representing the materials sector, carries an overweight rating. The stock has delivered a negative 11% return over the past year, underperforming MSCI India by 6%.

Prestige Estates is the focus list's real estate pick with an overweight rating. The stock has gained 1% over the last 12 months, outperforming MSCI India by 6%.

Adani Power stands out as the best-performing stock on the list. The utility sector company has delivered a stellar 71% return over the past year, outperforming MSCI India by 76%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)