March 10, 2011

Nomura is bearish on India, feels inflation may worsen

Nomura hascut its e xposure in emerging market since the first week of December, moving from an overweight view to an underweight one.

The inflationary backdrop in India is bad and is probably going to worsen before getting any better. Also, valuations have been a little stretched, especially in India. The gap in PE multiples between India and other emerging markets (particularly China) needs to narrow down.

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