Budget 2026, Feb. 2 -- Morgan Stanley said it remains 'overweight' on Indian equities after the Union Budget 2026 announcements on February 1.

As per the global brokerage, the Union Budget 2026 carefully balances fiscal consolidation with growth support. It observed that the Budget blends cyclical recovery measures with long-term structural reforms that could strengthen India's medium-term growth trajectory through higher capital expenditure, manufacturing competitiveness, and services sector incentives.

"The Budget balances debt to GDP reduction with slow paced fiscal consolidation and support for growth through cyclical and structural measures. We remain constructive on Indian equities - Overweight Financials, Consumer Discretionary a...