Sensex Now Down More than 500 Points

BSE Sensex was down 565 points in trade on Thursday afternoon as the market absorbed the impact of the US downgrade.

Sensex was trading at 65,216 points after a steep fall yesterday.

Titan led the Sensex losses down more than 2 per cent.

Morgan Stanley has upgraded India to overweight. India rises from number 6 to number 1 in our process, with relative valuations less extreme than in October, while MS macro, strategist and bottom-up analyst scores reflect MS' Blue Paper thesis on India's Decade.

Our call last October for the beginning of a new bull market in Asia/EM equities is increasingly priced, with MSCI EM up 24 per cent since the late-October trough, 5 per cent below our June 2024 target of 1,100.

Australia moves down to number 22 of 27 markets in our framework, Morgan Stanley said.

Taiwan moves down to number 7 in our framework. It downgraded MSCI China to equal weight as growth and valuation concerns remain: MSC China is now within 7per cent of our target of 70 and has delivered 9 per cent total returns since December 4, in line with MSCI EM.