The brokerage firm, Morgan Stanley, has upgraded its view on India's markets to overweight from equal weight, predicting a ‘long wave boom’ ahead. The brokerage firm believes that India's reform and macro-stability agenda supports a strong capex and profit outlook. An overweight rating means that the firm expects India's economy to perform better in the future. 

The upgrade has come in the backdrop of the US losing the AAA status and the economic slowdown in China. The firm has cut its rating on Chinese stocks to equal weight. In its analysis, Morgan Stanley said, India is now the top ranked, most-preferred market among emerging markets, rising from the sixth spot, due to supportive foreign inflows, macro stability and a positive earnings outlook.