New Delhi, Sept. 1 -- The Indian stock market may be underestimating the likely turn in the growth cycle, said Morgan Stanley equity strategists Ridham Desai and Nayant Parekh. In their latest strategy report, they contend that the earnings and market peak is in front of us, supported by structural changes in the economy and improving macro stability.

Morgan Stanley strategists highlight that India is poised to gain a larger share of global output over the coming decades, underpinned by strong foundational factors such as robust population growth, a functioning democracy, macro stability-influenced policy, better infrastructure, a rising entrepreneurial class, and improving social outcomes.

These shifts, they note, imply that India will...