India extremely expensive says UBS, even as it gives China a double upgrade

Global brokerage UBS has said the Indian market has turned unattractive due to extremely expensive valuations relative to the ASEAN countries. The brokerage has an ‘underweight’ stance on India along with Taiwan and Australia (just downgraded from neutral).

“In our framework, Taiwan, Australia and India look unattractive, especially on valuations/ earnings and ASEAN generally looks positive,” said UBS Strategist led by Niall MacLeod in their APAC Equity Strategy note on Wednesday.

ASEAN stands for Association of Southeast Asian Nations, while APAC is Asia Pacific.

UBS is currently overweight on Indonesia, Philippines, Singapore, Malaysia and China (upgraded from underweight to overweight).—markets