It looks like the foreign institutional investors do not want to miss out on any chance to be part of India s growth story. Otherwise, what else could explain the back-to-back upgrade in the stance by Credit Suisse followed by Nomura? Credit Suisse on Tuesday upgraded its stance on India to ‘overweight’ in its Asia Pacific (APAC) model portfolio as it believes India looks much better positioned cyclically and relative to the pandemic. No later than a day, Nomura followed suit and too raised its rating on Indian equities to ‘overweight’ in its Asia ex-Japan portfolio.
Amid this backdrop, how much more meaningful upside can we anticipate for the market? In this podcast, Jyoti Roy, DVP Equity Strategist at Angel Broking answers this and more
The sharp turnaround in the economy coupled with a drop in Covid cases over the past few weeks has led Credit Suisse upgrade its stance on India to ‘overweight’ is its Asia pacific (APAC) model portfolio. India, it believes, looks much better positioned cyclically and relative to the pandemic. “India suffered a severe outbreak but has seen a dramatic drop in infections, likely due at least in part to achievement of herd immunity in some locations. Earnings per share (EPS) momentum is among the regions’ strongest. Its credit cycle is at an earlier stage than perhaps all other APAC markets. The scope for rate cuts is greater than in perhaps every other market save Indonesia,” wrote Dan Fineman, co-head of equity strategy for Asia Pacific at Credit Suisse in a February 16 note.