New Delhi, Nov. 5 -- The Indian stock market, which has corrected sharply since late September 2024, appears poised for a recovery amid a favourable macroeconomic environment and a turning growth cycle, according to Morgan Stanley.

The benchmark indices - Sensex and Nifty 50 - remain over 2.5% below their record highs hit in September last year. This underperformance, relative to Asian and developed peers, has been attributed to a combination of growth slowdown and stretched valuations.

"That India does not offer explicit AI-related trades is another reason. The delay in the India-US trade deal has also contributed to volatility. And India's low beta does not help in a global equity bull market," said Ridham Desai and Nayant Parekh, equ...