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.
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