Morgan Stanley recommendations are following the Indian market but not lading it ;-). Morgan has upgraded India to Equal weight from Underweight.
India’s quant model ranking has improved from #19 to #13 making it the biggest gainer in rank on the month. India has had a major jump in its relative EPS growth (#6 to #2) indicating a less severe deterioration on these metrics over the last month than other EM markets. On the trailing P/E (#17 to #11) and P/CE metrics (#13 to #10) India has also improved significantly.
However, India remains locked at the bottom of the asset class on the dividend yield metric. The market’s technical ranking has also improved (#14 to #9).
You can recall, Morgan Stanley has got many forecasts about India wrong. Former Morgan Analyst Andy Xie had told India will slip into Bear Phase in 2006 but it made an all time high in Jan-08.