Markets Daily India

Morgan Stanley Downgrade Deals a Fresh Blow to Indian Stocks

Foreigners have rushed to sell shares amid the Middle East conflict.

Brokers watch their screens during trading hours inside a dealing room.Photographer: Abhijit Bhatlekar/Bloomberg News

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By Savio Shetty and Alex Gabriel Simon

March 6, 2026 at 2:45 AM UTC

This article is for subscribers only.

Good morning...

I’m Alex Gabriel Simon, with your pre-market snapshot for Friday as this volatile week draws to a close.

Oil remains the biggest focus for global and local investors. Morgan Stanley has just downgraded Indian stocks to equal-weight relative to Asia and emerging markets, citing macro uncertainty and India’sl vulnerability to oil supply risks. Global funds have pulled $1.3 billion from local stocks in just two sessions amid the Middle East conflict. One silver lining: the US has issued a general license to allow for some Russian oil sales to India, giving refiners more flexibility. Indian shares staged a sharp rebound on Thursday as broader Asian market recovered. But the regional gauge of equities is down again early trading on Friday, and heading for its worst week in six years.

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