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Jefferies has raised its investment exposure to India in its latest Asia Pacific ex-Japan strategy, reflecting strong confidence in the country’s economic and market potential. The firm has assigned India a recommended weighting of 21% in its Asia ex-Japan equity portfolio, marking an overweight position compared to its 18.1% share in the MSCI benchmark. This allocation places India among the top regional preferences alongside markets like China. The overweight stance comes at a time when global investors are rebalancing portfolios to reduce exposure to US dollar-denominated assets, as signs emerge that the greenback may have peaked.
India’s Economic Resilience And Market Appeal
Jefferies’ decision to increase exposure to India comes amid expectations that Asian currencies, including the Indian rupee, will appreciate over the long term. This shift enhances the appeal of regional equities, including those in India, to international investors. While the report does not provide a detailed country-specific breakdown for India, the increased allocation underscores confidence in India’s domestic demand, economic stability, and policy continuity. India stands out as one of the more resilient economies in the Asia-Pacific region, supported by strong private consumption, ongoing infrastructure investment, and a growing digital economy.
India’s Position In The Regional And Global Market
Jefferies’ overweight recommendation reflects broader market trends where India has consistently attracted foreign inflows and demonstrated relatively stronger corporate earnings performance compared to its regional peers. Unlike export-heavy economies that may face challenges due to currency appreciation, India’s large internal market and a policy tilt towards self-reliance put it in a favorable position. The firm also highlighted a shift in preference from export-driven stocks to more domestic-focused equities across Asia, a trend that further benefits India.
Jefferies Bullish On India’s Growth Potential
The report suggests that India’s growth prospects are central to Jefferies’ increased allocation. It emphasized that global investors, whether in equity or fixed income, are encouraged to allocate more capital to the Asian region, even if currency appreciation poses challenges for export-heavy stocks. Jefferies’ bullish stance on India positions the country as not just a key part of regional diversification, but also a core growth engine within the emerging market universe.
(With Inputs From ANI)
