Nomura upgrades India’s rating over strong macro

Nomura Group has upgraded India’s ratings to ‘overweight’ due to strong macro-economic fundamentals and the expected benefits from the ‘China plus one’ policy. They believe India remains an attractive long-term investment destination despite a potential cyclical slowdown. This follows similar upgrades by Morgan Stanley and Goldman Sachs. Nomura analysts also highlight India as a large-liquid market and counterweight to north Asia, with high quality growth stocks and upwardly revised corporate earnings. However, concerns include the risk of political instability and stretched government finances.