Morgan Stanley has turned more constructive on India’s energy and chemicals sector, citing well-supplied global markets, state-owned enterprise reforms, strong domestic demand, and the monetisation of key projects. The brokerage highlighted Reliance Industries as its top pick, followed by HPCL, GAIL, MGL, and other fuel retailers.
Morgan Stanley remains cautious on specialty chemical stocks, maintaining an underweight stance due to weak global demand and high input costs. However, it believes integrated energy players are well-positioned to benefit from policy tailwinds and improved project economics.
The firm sees a supportive earnings backdrop for FY26, especially for companies with diversified business lines and pricing power.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
