Swings in Indian stocks during the polling cycle in Lok Sabha elections should be seen as an opportunity to buy, JPMorgan Chase & Co.’s private banking unit said. This comes as India kicks off nationwide polls from today (April 19) with votes to be counted on June 4 ahead of which Indian equities rose to record high this year owing to a rally driven by robust economic growth.
Alexander Wolf, head of Asia investment strategy at JPMorgan Private Bank wrote in a note, “We remain convinced of the structural growth opportunity in Indian equities. Long-term investors could be at least ‘neutral’ relative to the benchmark, and a strategic ‘overweight’ is warranted in our view.”
Indian stocks are “not attractive valuation-wise but they also do not appear euphoric at the moment. For countries with high future growth potential and a track record of impressive earnings, a higher multiple makes sense,” the note added.
