Credit Suisse ‘underweight’ on Indian equities - Hindustan Times
close_game
close_game

Credit Suisse ‘underweight’ on Indian equities

Press Trust of India, New Delhi | By
May 16, 2018 12:29 PM IST

Global financial services major Credit Suisse in its strategy report said the MSCI India index has fallen by the least as against Indonesia and the Philippines.

Global brokerage Credit Suisse is “underweight” on Indian equities in an Asia Pacific context, as the domestic equity market’s premium has risen to the highest level.

Credit Suisse reiterated its underweight call on India in an Asia Pacific context.(Reuters/File Photo)
Credit Suisse reiterated its underweight call on India in an Asia Pacific context.(Reuters/File Photo)

The global financial services major in its strategy report said the MSCI India index has fallen by the least as against Indonesia and the Philippines.

Hindustan Times - your fastest source for breaking news! Read now.

According to the report, India fell just 9.9% from the highs versus falls of 19% for both MSCI Indonesia and MSCI Philippines.

“With continued downgrades to consensus EPS and weak ROE, India’s premium on our P/B vs ROE valuation model has now risen to 64% — close to its highest ever,” Credit Suisse Research Analysts Sakthi Siva and Kin Nang Chik said in the note.

Credit Suisse reiterated its underweight call on India in an Asia Pacific context.

The brokerage believes overvalued markets could stay overvalued for longer than expected especially if the US-China trade war escalates, but cautioned that India could be the next shoe to drop.

“We believe the current combination — close to highest ever premiums versus the region, four consecutive years of downgrades to consensus EPS, current account deficit, rising oil prices further pressuring the current account and fiscal deficits and the fact that foreign investors have yet to capitulate — suggest India could be the next shoe to drop,” the report noted.

The BSE benchmark Sensex is hovering around 35,300 points. It has gained 3.65% so far this year.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On