UBS Is Calling Time on Indian Stocks’ Outperformance Over China
- Stimulus, better geopolitical relations to help Chinese shares
- Earnings growth in India expected to be “very ordinary”
The Bombay Stock Exchange (BSE) building in Mumbai, India.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Chinese equities are set to outperform Indian peers next year as their battered valuations suggest significant upside potential once sentiment turns, according to UBS Group AG.
Stocks in China have currently priced in “lots of negatives,” making them poised for a sharp rebound when catalysts arrive, said Sunil Tirumalai, UBS’ global emerging market strategist. Meanwhile, earnings-based valuations for Indian shares are already at “fairly extreme levels.”