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.