Surprise election outcome in May can see markets tank 40%: Morgan Stanley

The defining moment, Desai said, could be if and when the 26-party opposition alliance, known as I.N.D.I.A., is able to strike a seat-sharing deal

Morgan Stanley sees up to 10 per cent rise in the Indian markets ahead of general elections scheduled for May 2024 in anticipation of ‘continuity and majority’ in the polls. Markets, Morgan Stanley said, typically approach the elections with optimism, and this time around is likely to be no different. However, it cautions that the markets can tank up to 40 per cent in case the outcome is unfavourable.

“Historically, the Indian market approaches elections with optimism. We expect it to follow a familiar