Brief by Shorts91 Newsdesk / 10:30am on 27 Oct 2023,Friday Business
JP Morgan has upgraded India to an overweight rating, aligning with global brokerages like Morgan Stanley, CLSA, and Nomura. This shift is driven by several factors, including the positive impact of general elections, robust growth in emerging markets' nominal GDP, and the expansion of India's bond market, expected to lower risk premiums. The upgrade is based on both cyclical and structural factors, considering India's strong nominal GDP growth, competitive risk-adjusted returns, and a deeper domestic bond market. Despite challenges in emerging market equities due to rising US long rates, JP Morgan sees potential opportunities. The brokerage has also revised its portfolio to include Sun Pharmaceutical Industries Ltd, Bank of Baroda, and Hindustan Unilever.
