At a time when Indian outsourcers are facing the brunt of tougher visa norms in the U.S., Ridham Desai of Morgan Stanley believes that its the technology stocks that could well turn out to be the dark horse for Indian markets. The India equity head of research at the global investment bank told BloombergQuint that higher capital spending by American corporates will more than compensate for the visa hurdle that Indian I.T. companies have been facing lately.
While the “structural story is still bad”, there could be a surprise waiting, he said on the sidelines of the Morgan Stanley 19th India Summit.
Benchmark Indian equities, already at record levels, are set to head even higher, said Desai. Indian stocks are one of the biggest gainers of “secular global bull run” that’s underway, he added.
Here are some of other key takeaways from Desai’s conversation with BloombergQuint.
- Nifty could triple over the next five years
- There will be enough corrections en route for people to invest
- Consumer, infrastructure and financial sectors will drive growth
- Prefer private banks over public sector lenders
- GST will cause some short-term pain, for small and medium enterprises
Here’s the entire conversation with Desai.