Pedestrians walk past the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Here’s Why UBS’ Geoffrey Dennis Remains Neutral On India 

Indian equities have turned attractive after the recent correction, but not enough to buy into significantly, according to Geoffrey Dennis, head- global emerging markets at UBS Investment Bank.

Valuations had become too high last year and investors were ‘Overweight’ on India for a while, which changed in the recent past with foreign investors pulling out from the markets, Dennis told BloombergQuint in an interview.

Valuations have become more reasonable here (for India) following a tough start to the year... we, however, are neutral on Indian equities.
Geoffrey Dennis, Head- Global Emerging Markets, UBS Investment Bank

Both the Indian benchmarks, the S&P BSE Sensex and the Nifty 50 have fallen nearly 8 percent after hitting all-time highs on Jan. 29 this year.

The Reserve Bank of India is unlikely to alter interest rates this financial year, Dennis said. The Monetary Policy Committee led by RBI governor Urijit Patel will announce its decision on policy rates later today. “Rates may go up if inflation inches higher,” Dennis added.