Nomura downgrades Indian equities from 'overweight' to 'neutral'

Says there are few signs of meaningful economic recovery

Nomura has downgraded its stance on domestic equities from “overweight” to “neutral”, citing slower-than-expected economic recovery and fears of fiscal slippages. The change in stance comes even as the benchmark indices continue to scale new lifetime highs. 

In the past month, the Sensex has closed at new all-time highs on five occasions, and also on Monday. 

“With the domestic benchmark index rallying but still little signs of a meaningful recovery in growth, we believe the scope for outperformance of India equities is limited. Thus, we downgrade our tactical relative stance on Indian equities to neutral. We would look to turn more constructive