Politics no more a deterrent for Dalal St: Morgan

Indian stock markets have developed a resilience to political hurdles to reforms, and have aligned to global cues which decide the direction of their movement, according to a report released by global equity research and investment banking major Morgan Stanley.

The report said the political class seems to be disillusioned with the current environment with regard to the progress on economic reforms.

"The market continues to remain largely dependent on global cues and political issues are most likely to take a backseat when it comes to the movement on the bourses in the near term," India-based economists Ridham Desai and Kuleen Tanna said in the report.

Morgan Stanley said that most of the senior politicians it met do not anticipate any major progress in reforms over the coming months.

"However, in a longer-term perspective, it is important for India to fix its political inertia and lack of polarity in electoral verdicts, given the co-relation between the strength of the government and the economic development," the report added.

The recent trend on the bourses shows a strong co-relation with global economic events while domestic geo-political issues have largely been discounted by the market.