Stability Or Surprise? Morgan Stanley’s Analysis of Growth Divergences — Check Top Stock Picks
Morgan Stanley expects the second quarter of fiscal year 2026 earnings to confirm business stability for the Indian IT services sector, but warns that a lack of clarity on growth acceleration for fiscal year 2027 will persist, keeping a lid on investor sentiment.
The report highlights the concern over muted FY27 growth and the continued de-rating of global tech services are the main factors currently affecting the sector’s valuation, making it tricky to identify new investment opportunities.
Morgan Stanley expects near-term growth trends to be stable, marked by a continued lack of acceleration in discretionary spending across most segments. While a strong pipeline of large deals exists, these are primarily focused on consolidation and…
