Morgan Stanley Lowers India Exposure Citing Iran Conflict and LNG Supply Risks

Morgan Stanley has downgraded India from overweight to equal-weight in its Asian equities portfolio due to concerns over potential supply chain disruptions from the Iran conflict, particularly affecting LNG supplies through the Strait of Hormuz. The firm highlights Asia's dependence on Middle Eastern energy and warns of market complacency amid geopolitical risks. Investors may delay reallocations to India until tech cycles in South Korea and Taiwan stabilize. The firm also adjusted ratings for other Asian markets amid ongoing capital outflows.