Here are 7 India stocks Morgan Stanley likes — and one's up nearly 300% from a year ago

India traders at the Motilal Oswal Financial Services Ltd. office in Mumbai, India.
Vivek Prakash | Bloomberg | Getty Images

Indian shares look set to overtake their emerging market counterparts in 2021, Morgan Stanley said.

Performance of Indian equities are likely to be driven by earnings growth, current underperformance, strong policy traction and reasonable relative valuation, said the investment bank's strategists in a report published on May 17.

Despite a devastating second wave of Covid-19, India's benchmark S&P BSE Sensex index has remained relatively stable and is up about 5.8% year-to-date based on Monday's close.

Here are seven stocks on Morgan Stanley's focus list for India, which contains companies in the country that the investment bank likes.