The rating shift reflects a change in the bank's preference across Asian markets.
\n\nGlobal banking major HSBC has upgraded Indian equities to 'overweight' from its earlier rating, signalling increased confidence in the country's stock market prospects, while downgrading Chinese equities to 'neutral'. The rating shift reflects a change in the bank's preference across Asian markets, with India emerging as a more favourable investment destination compared with China amid evolving market conditions and investor sentiment.
\n\n"We upgrade India to overweight as we think it now offers resilient earnings and more reasonable valuations and while high oil prices and El Niño remain risks, they are unlikely to materially weaken overall sentiment," HSBC said in its latest Asia-Pacific equity strategy report.
\n\nHSBC said India's investment appeal is supported by strong credit growth, improving earnings momentum and policy measures aimed at sustaining economic growth and currency stability. A key factor behind the upgrade is the correction in Indian equity valuations over several years.
\n\nThis reset has made valuations more reasonable, particularly among large-cap stocks, after a period in which Indian markets underperformed other emerging markets. There could also be room for more foreign investment in Indian equities. According to the report, just 22 per…
Original source: https://www.timesnownews.com/business-economy
