Latest news with #IndiaStrategy
Time of India
13-05-2025
- Business
- Time of India
India's status as a defensive bet waning? CLSA says foreign flows may head back to China stocks
CLSA observed that India had emerged as a comparative leader and safe haven for investors. (AI image) India's defensive investment appeal during global uncertainty is diminishing, according to CLSA's recent India Strategy report. This shift stems from reduced trade friction between the United States and China, alongside improving regional diplomatic relations. Global risk sentiment has significantly improved following reduced tensions in South Asia and progress in US-China trade discussions. On Monday, the two nations agreed to reduce reciprocal tariffs for three months. The US decreased duties on Chinese imports from 145% to 30%, whilst China reduced its tariffs on US products to 10% from 125%. Additionally, China agreed to remove restrictions on rare earth minerals and magnets exports, which are essential for advanced manufacturing. Indian stock market indices declined in early trading on Tuesday, taking a pause following their most robust single-day advance in more than four years, which was driven by relief over the India-Pakistan ceasefire agreement. Also Read | Stock market rally post India-Pakistan ceasefire leaves investors richer by whopping Rs 16.15 lakh crore! Is the uptrend sustainable? CLSA observed that India had emerged as a comparative leader and safe haven for investors during periods of increased global trade tensions and border disputes with Pakistan. "The rise in these fears made India a hiding place and second-best performing market since March," the brokerage said according to an ET report. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 2 & 3 BHK Homes Near SIPCOT Starting @ ₹67.50 Lakh* TVS Emerald Learn More Undo With the United States and China reaching a trade agreement, CLSA warns that "it may reduce the relative attractiveness in India," suggesting possible underperformance if investment flows redirect towards Chinese securities. CLSA has revised its stance on the Indian information technology sector, elevating it to "overweight" from "underweight", reflecting improved global conditions. The firm has introduced Tech Mahindra into its model portfolio whilst substituting TCS with Infosys, noting the latter's advantageous position to capitalise on increased technology expenditure in the U.S. Also Read | Big jump in gold reserves! Not just India's RBI, central banks around the world are stocking up on gold - here's why Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, supported this assessment. "Since the probability of a recession in the US has come down, Indian IT companies might benefit from the higher tech spending by US companies," he said. Additionally, CLSA indicated a positive outlook towards consumer staples, utilities, real estate, banks and energy sectors. However, the firm maintained a cautious stance regarding industrials, materials, healthcare and discretionary sectors. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Upturn
05-05-2025
- Business
- Business Upturn
Morgan Stanley bullish on India's long-term story; bets on financials, industrials
By Arunika Jain Published on May 5, 2025, 07:37 IST Morgan Stanley has outlined its latest India Strategy, projecting that India is likely to outperform during a global bear market but may underperform in a global bull market. The firm believes the ongoing global uncertainty presents a buying opportunity for India's long-term structural story, though it warns that investors must be prepared for periods of external-driven volatility. According to the strategy note, patience will be key, as negative headlines from global markets could weigh on sentiment in the near term. However, the brokerage believes the long-term rewards from India will outweigh the short-term risks. In terms of sector preferences, Morgan Stanley is overweight on domestic cyclicals, specifically backing financials, consumer discretionary, and industrials. The firm has adopted an underweight stance on energy, materials, utilities, and healthcare, reflecting a cautious outlook on sectors sensitive to global macro and commodity cycles. The report emphasizes that the current environment is likely to favor stock pickers rather than those relying on top-down or macro-driven strategies, a shift from the broad-based trends witnessed during the pandemic years. Morgan Stanley added that it remains capitalization-agnostic, indicating a neutral view on large-cap vs. mid/small-cap allocations. Disclaimer: This report is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult a qualified financial advisor before making any investment decisions. Arunika Jain, a graduate in Mass Communication, brings a fresh perspective to the world of journalism. Arunika has a passion for writing finance and corporate news at You can write to her at [email protected]
