New Delhi, Jan. 8 -- Indian equities are positioned for further upside in 2026, supported by resilient economic growth, improving earnings visibility and supportive domestic policy dynamics, according to a report by Morgan Stanley.

In its latest India Equity Strategy Playbook, Morgan Stanley expects Indian stocks to surprise on the upside going forward.

"We see a sharp turn in earnings growth over the coming months," the report noted.

The report finds that India provides a durable foundation for equity returns, even amid global uncertainty.

Morgan Stanley said India's macro stability stands out at a time when many global markets are grappling with slowing growth and tighter financial conditions.

Strong domestic demand, ongoing public...