Nomura prefers India over Korea; ups rating to overweight in Asia portfolio

The key standout for India, Nomura believes, is the solid consensus' earnings revision trends. Alongside a focus on reforms and measures to attract foreign direct investment (FDI) flows.

The fear of missing out (FOMO) on the growth opportunity, it seems, is driving foreign investors to Indian shores. A day after Credit Suisse upgraded its stance on India to ‘overweight’ in its Asia Pacific (APAC) model portfolio, Nomura, too, has raised its rating on Indian equities to ‘overweight’ in its Asia ex-Japan portfolio.

“A number of recent positive developments in India lead us to change our stance to an Overweight (from Neutral) in our regional Asia-ex-Japan (AeJ) allocation. We view India as a counterweight to North Asia as a large liquid market that – despite its strong run recently