Mumbai, May 15 -- Indian stock markets are expected to witness a strong phase ahead as economic growth, company earnings, and government support measures are improving, according to a report by Morgan Stanley.

The report said steps such as RBI rate cuts, liquidity support, strong government spending and rising investments in sectors like defence, semiconductors, energy and data centres are expected to boost the economy and support stock markets in the coming months.

"With growth acceleration likely in the pipeline and valuations and sentiment at near extremes, Indian equities are poised for a strong year ahead," the report stated.

According to Morgan Stanley, India's earnings cycle is turning after witnessing a six-quarter mid-cycle sl...