Citigroup analysts upgraded India to "overweight" from "neutral" in their emerging markets allocation on Friday, citing strong earnings and economic growth momentum.
It also attributed India's one-year forward price-to-earnings (P/E) of 20x, which is slightly higher than the long-term averages, to a stable earnings trajectory.
The brokerage remains "overweight" on India's banks, insurers, public sector enterprises, autos and capital goods companies among others.
Citi downgraded China to "neutral" from "overweight", saying the recent rally in its stock markets occurred despite weakening fundamentals.
Citi reiterated its "overweight" rating on Taiwan and Korea, maintaining "underweight" on Latin American countries.
Persons:
Surendra Goyal
Organizations:
Hong, Citigroup, Citi, Jefferies, Asia
Locations:
India, China, Asia Pacific, Japan, Taiwan, Korea