CLSA Overweight On India: Should Investors Be Excited? Samir Arora Of Helios Capital Weighs In

Recently, Foreign Institutional Investors (FIIs) have withdrawn from Indian markets over the past few weeks. In the meantime, CLSA has reversed its earlier strategic move and said that it 'reverse its tactical allocation in early October, returning to a benchmark on China and 20% overweight on India.'

In its latest note CLSA has said that India is among the least exposed markets to Trump's adverse trade policy.

The stimulus announced by China's National People's Congress (NPC) is negligible for the purpose of boosting growth. India is relatively better placed and less exposed to trade tensions, given current tensions between US and China.

According to CLSA Indian markets are a "little ore palatable" for foreign investors and many are waiting for an opportunity to buy.

However, Founder of Helios Capital, Samir Arora has taken to the Elon Musk-owned social media platform X, to say that the CLSA report should not make Indian investors unnecessarily excited. He states that this is because it is CLSA and not CIA and because he believes that investors were not selling India to buy China but to buy USA.

He further adds in his post that "India to USA shift trade would have largely played out with average Indian stock down 10-15% and average US stock up 10% since September end so any one trying to do this trade now (sell India, buy USA) has already missed 25% odd."