Two Key Reasons Why JPMorgan Upgraded India To 'Overweight'

JPMorgan upgraded India's rating to 'overweight' from 'neutral' citing seasonal impact of Lok Sabha elections and the strongest growth among emerging markets.

The research firm will use "near-term correction/dip as an opportunity to add and leverage on a positive historical seasonality to general elections", the research firm said in a note. India also offers the "strongest EM GDP compounding", JPMorgan said, citing demographic trends and infrastructure investment needs.

A deeper bond market should also support lower risk premia, it said in a note. India has competitive risk-adjusted returns to developed market equities, it said.

JPMorgan added Sun Pharmaceuticals Ltd., Bank of Baroda, and Hindustan Unilever Ltd. to its EM Model portfolio.