In just over a week since Donald Trump won the US Presidency, Hong Kong-based brokerage firm CLSA raised its India allocation to a 20 per cent overweight, while cutting exposure to China. This is seen as a tactical reversal from its early October update when it went ‘overweight’ on China following Beijing’s first stimulus on September 24.

India is emerging as one of the least affected markets in the region when it comes to former U.S. President Donald Trump’s trade policies, highlighted a report by global brokerage firm CLSA. The report stated that this resilience is attributed to India’s relatively low trade exposure to the U.

Read why has CLSA reversed its allocation strategy, raising investment in Indian equities while cutting China exposure.

MUMBAI: CLSA, a foreign brokerage with a huge client base of funds investing in India, on Friday reversed its stand of being overweight on China and equal weight on India to 'overweight India' following Donald Trump's win in the US election.

CLSA has reversed earlier allocation, increasing India and cutting China, even as India faces sustained foreign investor outflows. It said several global investors have been waiting for a correction to re-enter the Indian markets.

China's recent economic woes, including trade tensions with the US and falling property prices, will likely continue to weigh on the Chinese equity market, it believes. In contrast, India is seen as a more attractive investment destination due to its strong economic growth and relatively low exposure to trade risks, CLSA said in a note.

While brokerage firms have said the foreign portfolio investors’ (FPIs) selling in India was primarily driven by the need to shift fund flows to China, some experts believe it was a play on US equities.

CLSA reverses trade over-exposure from India to China, citing India's resilience to trade policy and strong domestic ownership.

Global brokerage firm CLSA has reversed its early tactical shift from Indian equities to Chinese stocks, and has decided to raise India allocation while cutting exposure to China.

CLSA reverses its investment shift from India to China, citing economic concerns in China, trade tensions, and rising U.S. yields. It increases India exposure, despite risks like market issuance surge.