Morgan Stanley, Nomura, and CLSA, prominent global brokerages, have recently upgraded their outlooks on India’s economic future, demonstrating increased confidence in the country’s market potential.
On Wednesday, CLSA transitioned from a 40% ‘underweight’ stance to a 20% ‘overweight’ position. This move signifies a substantial shift in the brokerage’s portfolio towards the Indian market.
This follows a similar move by Nomura last month, which upgraded its position from ‘Neutral’ to ‘Overweight’. The brokerage perceives the current rise in oil prices as an opportunity to enhance its exposure to Indian equities. Nomura remains optimistic about investor sentiment despite high market valuations, which it attributes to consistent government policy and political stability.
Nomura further emphasized India’s strategic standing within the global equity market. The brokerage pointed out that India’s positioning is being reinforced by the China+1 theme, indicating a diversification strategy where companies look beyond China for investment and supply chain alternatives.
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