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Indian equities seen lagging other EM peers in the next few months

UBS, Credit Suisse see emerging markets doing well next year, but expect India to underperform, given its rich valuations

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It is overweight South Korea and Japan but underweight China, Taiwan and Hong Kong

6 min read Last Updated : Nov 26 2020 | 1:11 AM IST

Emerging market (EM) equities are likely to outperform in the next few months, but India’s prospects look less attractive because of its rich valuations, according to estimates of two of the top European brokerages.

UBS believes that global equities, particularly EMs, are likely to outperform in the coming 3-4 months, before US equities catch up from the second quarter of 2021. The brokerage is neutral on India, and has estimated an earnings per share (EPS) growth of 25 per cent for 2021 and 15 per cent for 2022.

It is overweight on South Korea and Japan, but underweight on China,

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