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With earnings belying the rising valuations and the benchmark indices Sensex and Nifty logging a series of fresh highs in the last two months, UBS has flagged concerns and cut its rating on India to ‘neutral’ from ‘overweight.
It cited a sharp rise in valuations which has limited the risk-to-reward gains from the current levels.
Risk-to-reward ratio is a multiple which compares the possible returns of an investment against the amount of risk undertaken to capture these returns.
The downgrade came after the global investment bank in February upgraded India’s rating to Overweight with the demonetisation fears beginning to recede, and earnings
