India among UBS’ preferred bets amid positive EM outlook

UBS has turned bullish on emerging markets (EM), including India, as it finds benign macro trends, positive momentum in earnings revisions, and resilient EM currencies helping these economies sustain higher valuations and attracting flows.

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Among regions, it has upgraded Mainland China to ‘attractive’ and China Tech to ‘most attractive’, while downgrading Philippines to ‘neutral’.

“We upgrade EM equities (MSCI EM) to attractive, reflecting a constructive macro backdrop, and improving financial conditions on the back of Fed easing and a softer US dollar. Our preferred markets are Mainland China, India, Brazil, and Indonesia,” wrote analysts at UBS in a recent note.