Mumbai (Maharashtra) [India], November 18 (ANI): The domestic stock markets are expected to recover strongly in 2026 after delivering their weakest performance recently in the last three decades, according to a report by Morgan Stanley .

The global financial firm noted that following their "worst underperformance in three decades", Indian stocks are poised to "regain their mojo" over the next 12 months.

The report said policy has shifted in a supportive direction and is likely to drive a strong revival in nominal growth. This, in turn, is expected to pull earnings growth out of the mid-cycle slowdown seen in the past year.

Morgan Stanley added that relative valuations have corrected and are now in line with expectations of improved forward performance.

At the same time, foreign port

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