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Credit suisse downgrades India to underweight on soaring crude oil prices

Foreign brokerage Credit Suisse has downgraded Indian equities from “overweight” to “underweight” due to surge in international oil prices. Oil prices continue to rise on Tuesday, with Brent surging past $126 a barrel, as fears of formal sanctions against Russian oil and fuel exports spurred concerns about supply availability.
“Because of its strong structural prospects and robust EPS momentum, we will look for opportunities to re-enter the market, but today we tactically cut our India position from overweight to underweight,” Credit Suisse said in a research note.
It, however, added that it still liked “India’s positive EPS revisions and positioning in credit and property cycles”, further stating that it would use funds freed from India to raise China to ‘Overweight’ from ‘Market Weight’.

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