'Credit Suisse', the global research and brokerage house, has downgraded Indian equities from ‘overweight’ to ‘underweight’ citing soaring oil prices that hit a 14-year high of over $140 a barrel in trade yesterday (7th March 20222)
“Because of its strong structural prospects and robust EPS momentum, we will look for opportunities to re-enter the market, but today we tactically cut our India position from overweight to underweight. Higher oil prices hurt the current account, add to inflationary pressures and increase sensitivity to Fed rate hikes,” said a note submitted to Credit Suisse.
The funds excess available with Credit Suisse as a result of India's downgrade will be used to buy Chinese stocks, it said while upgrading the stocks to overweight (Market Weight earlier).
Read more