The foreign brokerage held back from upgrading India to ‘Overweight’ because of high-valuation premium and the weakening balance of payments

The foreign brokerage held back from upgrading India to ‘Overweight’ because of high-valuation premium and the weakening balance of payments

Subject : Economy

Context:

Credit Suisse’s Global Equities Strategy team has upgraded India from ‘Underweight’ to ‘Benchmark’ for 2023, on the back of the country’s underlying economic strength.

Details:

In 2022, inflows from domestic institutional investors (DIIs) overshadowed foreign portfolio investments and Credit Suisse sees this trend continuing.

Credit Sussie:

• It was founded in 1856 to fund the development of Switzerland’s rail system.
• It is a global investment bank and financial services firm headquartered in Zürich
• Credit Suisse is also the primary dealer and Forex counterparty of the FED.
• It releases the Global Wealth Report– provides the most comprehensive and up-to-date coverage of information on household wealth worldwide.
• Credit Suisse  is organised as a joint-stock company
• Credit Suisse has two divisions:
  • Private Banking & Wealth Management– Credit Suisse Private Banking has wealth management, corporate and institutional businesses.
  • Investment Banking-Credit Suisse Investment Banking handles securities, investment research, trading, prime brokerage, and capital procurement.
• A Shared Services department provides support functions like risk management, legal, IT, and marketing to all areas.
• Credit Suisse Asset Management sells investment classes, alternative investments, real-estate, equities, fixed income products, and other financial products.

What is underweight?

When a market analyst designates a stock or security as an underweight recommendation, he or she is stating their belief that the stock will likely underperform compared to some benchmark stock, security, or index