JP Morgan, a prominent global brokerage firm, has joined the growing number of optimists regarding India. The brokerage has revised its stance on India, shifting from a ‘neutral’ position to an ‘overweight’ one. This change in perspective is attributed to a combination of both short-term cyclical factors and long-term structural considerations.
JP Morgan is advising investors to view any upcoming market corrections or dips as favourable occasions to incorporate Indian stocks into their investment portfolios. The brokerage also points out that historically, the Indian market tends to experience upward momentum in the lead-up to general elections.
Moreover, they added India’s nominal GDP is strongest when compared to other emerging markets. Risk to reward ratio of India is also better than other developed markets and this will increase interest amongst global investors in India’s bond market.
The recent additions in JP Morgan’s emerging markets portfolio are:
As of the latest data, Sun Pharmaceuticals Industries Ltd is trading at Rs. 1,115.65 per share, with a potential upside of 13 percent, reaching Rs. 1,260.
Hindustan Unilever Ltd, on the other hand, is currently trading at Rs. 2,481.60 per share and has a projected upside of 12.8 percent, targeting Rs. 2,800.
Bank of Baroda’s current share price stands at Rs. 196, and it is anticipated to have a potential upside of 17 percent, reaching Rs. 230.
At the beginning of this month, the global brokerage firm CLSA changed its India allocation, shifting from a negative rating of ’40 percent underweight’ to a positive one of ’20 percent overweight.’ This decision is based on their belief that India’s robust economic fundamentals are well-positioned to support the continued growth of the equity market.
Written by: Vinit Israni
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