John Paul Smith, Deutsche Bank has expressed his opinion on India as a market and has stated that they are likely to go Overweight from being Neutral in rating of our country. Lets see if it can add a few points for our indices on upside. Read his comments below:
I am afraid we have been neutral in India and we remain neutral relative to the rest of the global EM universe. We quite like to go overweight there, but frankly the uncertainties are just too great at the moment. You know there is some difference of opinion in terms of what is actually happening on the ground in India. In other words, some of the infrastructural bottlenecks that many people have talked about over the past year starting to be overcome at the local level. Top down frankly the whole situation still looks very messy and we still have a little while to go until the UP election. Perhaps once that is out of the way we will see some real progress in some of the top down structural reform drivers but certainly I doubt is that it is very messy period, it will probably be very volatile in terms of the impact it will have on the equity market. So I am not really ready to overweight the market yet, but the reason I am not underweight frankly at the moment is because I don't like any of the BRIC markets either, particularly China where we think there is every chance of a hard landing as we move through towards the end of this year.