Mumbai: Credit Suisse has upgraded its rating on India to ‘overweight’ from ‘market weight’ on expectations that the recovery in economic and corporate earnings are starting their most rapid phases. The brokerage said the earnings momentum for India is among the best in the region, and the pandemic is no longer a major factor.
“India looks much better positioned cyclically and relative to the pandemic,” said Credit Suisse in a note. “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.”
Credit Suisse said the credit cycle in India is at an earlier stage compared to all other markets in the region. “The scope for rate cuts is greater than in perhaps every other market save Indonesia,” the brokerage said.
Credit Suisse upgraded India after downgrading China from ‘overweight’ to ‘market weight’ in the Asia Pacific portfolio. It said the most exciting period of China’s recovery has passed.
