Citi upgrades India to 'overweight' citing stable earnings, economic growth

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Citi upgrades India to 'overweight' citing stable earnings, economic growth

BENGALURU - Citigroup analysts upgraded India to "overweight" from "neutral" in their emerging markets allocation on Friday, citing strong earnings and economic growth momentum.

Citi's view is underpinned by the expectation that India's economy - the fastest growing among major peers - will remain strong, growing at 6.8% in the current fiscal. The brokerage remains "overweight" on India's banks, insurers, public sector enterprises, autos and capital goods companies among others. It recommends "underweight" on information technology firms, metals, consumer durables and discretionary as well as paint companies.

China's markets, however, have benefitted from a rising share of foreign inflows, helped by valuations that are relatively cheaper than India's.

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