Morgan Stanley profits surge as dealmaking rebounds

Morgan Stanley reported a sharp rise in  the quarterly profit as investment banking activity recovered strongly. Revenue climbed to $70.65 billion, supported by a 47% jump in investment banking revenue to $2.41 billion. Advisory and underwriting volumes improved as capital markets reopened. Executives said deal pipelines remain active heading into the 2026 despite macro uncertainty and cautious corporate spending across sectors globally.

Indian equity benchmarks edged higher after Infosys reported stronger than expected earnings, lifting IT sector sentiment. Optimism around deal wins, stable margins, and improved client spending visibility supported gains. State-owned bank stocks advanced on selective buying. Investors stayed cautious ahead of global cues, but earnings-driven momentum offset valuation concerns, foreign fund flow worries, and near-term macroeconomic uncertainty.