New Delhi, Dec. 4 -- The year 2026 could be an exciting year for the Indian stock market because of strong macro, healthy earnings growth, and comfortable valuations, according to Ridham Desai, Managing Director at Morgan Stanley India.

Interacting at the 23rd edition of the Hindustan Times Leadership Summit, Desai underscored that the past 12 months have been difficult for the domestic market, even as the global stock market enjoyed a strong bull run.

India's underperformance over the last 12 months was primarily due to a mid-cycle growth slowdown beginning last September, high relative valuations versus emerging markets, and global AI trade.

All this is turning now, Desai noted.

"Growth has already begun to turn. Valuations of the I...