The Hindu Business Line

Kotak Bank pares bearish bet by 10%

- BLOOMBERG

India’s Top wealth manager last month retracted its most bearish call since 2013 on the country’s equities and advised clients to start loading up on mid-sized companies. Shares have surged since.

Kotak Mahindra Bank’s wealth unit dialled down its bearish stance on March 1, advising clients to be 10 per cent underweigh­t Indian equities from 20 per cent previously, Srikanth Subramania­n, senior executive director of the private bank, said in an interview. The change was driven by better liquidity, a more dovish policy stance in the US, and an increased market perception that the current Indian government will get another term, he added.

Foreigners have pumped more than $8.4 billion into Indian stocks so far this year — the highest for Asia — on optimism that lower borrowing costs and a second-term for Prime Minister Narendra Modi in upcoming polls would support earnings growth in Asia’s third-biggest economy. The advance in the benchmark equity index has made India the first among markets valued at more than $1 trillion to hit a record high in 2019.

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