UBS is becoming more optimistic in the market in southern Asia in the midst of a growing preference for defensive and country -oriented actions | Photo credit: arnd wiegmann
UBS Group AG is abandoning its bearish vision of long -standing Indian actions, updating the market to a low weight neutral, since it realizes its strategy given global commercial uncertainties.
The broker is becoming more optimistic in the market in southern Asia in the midst of a growing preference for defensive actions oriented to the country, the strategists that include Sunil Tirumalai wrote in a note dated Thursday.
“While the valuations still seem faces in relation to the ordinary fundamental performance of the companies, India shows the defensive in the midst of commercial uncertainty given its economy focused on the national level, while benefiting from the lowest prices of crude oil,” the analyst wrote.
The update occurs when world investors are forwarded in Indian assets as a relative insurance shelter following the tariff war of the president of the United States, Donald Trump, with local reference points that quickly recover losses from the announcement of the taxes of April 2. The will of Indian banks to reduce deposit rates despite the weak growth of deposits and the potential of government support for consumption has been factors for update, the UBS analysts added.
Meanwhile, UBS reduced Hong Kong’s actions neutral overweight, since the tariff risk could feel the relatively high commercial dependence on the market and exposure to the index to US income.
The broker also improved Indonesia at the overweight of neutral, given its national and defensive qualities “with valuations now close to the minimum Covid” and the possible support of state funds.
Undoubtedly, the strategists that house overweight in India, since the foundations of the actions “remain mediocre” and the bleaching approach is not clear is to return to growth or investments in the short term. It is also “difficult to conclude that India is a winner in the changes in the supply chain,” they wrote, adding that China still looks more attractive than India from a risk reward perspective.
The Tirumalai team has had a low weight rating in India since 2022. In April of last year, they updated overweight Chinese actions, citing a promising perspective and a greater partimation of national investors.
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Posted on April 24, 2025