Money fleeing China's shaky stocks may overlook pricey India, says UBS

UBS predicts the NSE Nifty 50 Index will fall to 15,500 by the end of June 2022, down almost 5% from Friday's close.

Investors pulling out of China due to the recent regulatory crackdown may overlook India, where stocks are looking pricey after their climb to successive records, according to UBS Group AG.

“The perception of risks in China has gone up and may lead investors to take out money and deploy it into other emerging markets,” Sunil Tirumalai, head of India strategy, said in an interview. “However, given the expensive valuations for India, this money may flow into other markets.”

While the rest of the world gasped at a series of blow-ups in Chinese equities in recent weeks, India’s $3.1 trillion stock market extended