The Hindu Business Line
Kotak Bank pares bearish bet by 10%
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.