Institutional investor demand will fuel rally in mega stocks

Morgan Stanley picks 14 likely winners that could gain from this theme

The demand for companies with market capitalisation (m-cap) of over $10 billion (Rs 64,000 crore) — also known as mega caps — is set to increase on the back of higher institutional investor flows. Morgan Stanley, an influential foreign brokerage, has identified three key drivers that will cause more institutional money — domestic and foreign — flowing into Indian markets. 

“As Indian stocks gain weight in the MSCI EM Index, the market will attract tourist money and bigger flows, which will look for large liquid names to invest in,” say Ridham Desai and Sheela Rathi, equity strategist at Morgan