Alexander Redman, the Managing Director and Chief Equity Strategist at CLSA, highlighted the potential for greater foreign investment in India due to a shift in sentiment towards emerging markets.

Redman expressed disappointment in Chinese equities and suggested that foreign investors may soon find fewer reasons to be underweight in India.

In a tactical move, CLSA has increased its allocation to India to a 20% Overweight, while simultaneously reducing exposure to China.

Redman noted that in a global environment that is becoming less favorable for emerging markets, increasing weightage in India could be seen as a wise decision by investors.