CNBC reports that according to Morgan Stanley, Indian stocks have been outperforming other emerging markets for nearly six months and could continue to do so if supportive measures are in place, 

The outperformance began in April but the market’s short-term performance remains hinged to global factors, the U.S. investment bank said.

“We have been arguing that for this outperformance to be sustained, India needs to continue to deliver policy that lifts India’s potential growth in the eyes of market participants,” Ridham Desai, equity strategist, and Sheela Rathi, equity analyst, said in the report.

Three factors have helped India’s strong performance: an improving policy environment, corporate response to the pandemic and “an attractive starting point of valuations,” the bank said.