India's equity market rally has legs to run further, brokerages say

** Indian stock markets are poised to rise above current record levels despite expensive valuations, analysts at HSBC and Morgan Stanley say

** Nifty 50 NIFTY up about 4% this year, after gaining 20% in 2023; Sensex SENSEX up 3% after rising over 18% last year

** Strong earnings growth, backed by emerging private capex cycle, re-leveraging of corporate balance sheets, rise in discretionary consumption make Indian equity valuations "tolerable" - Morgan Stanley

** Nifty trading at 12-month forward price-to-earnings of 23 - elevated but still below 5-year average of 25, as per PrimeInvestor data

** The index's current valuation is below average of past five bull markets over three decades, Morgan Stanley says

** Even at premium valuation levels, the market has pockets of "reasonable" value, HSBC says