UBS bets on emerging markets; India among most preferred destination

Over the next three - six months, UBS believes earnings will be the main driver for EM equities outperformance

Despite the raging Covid pandemic and its impact on the economy, India is one of the ‘most preferred’ equity market for UBS. Besides India, China and Singapore markets also figure as the ‘most preferred’ destinations.

At a macro level, however, it remains bullish on emerging markets (EMs) as compared to the developed market (DM) peers, where it feels that the returns will remain in single-digits going ahead. Markets, it feels, are now transitioning to a more mature phase of the recovery trade. The initial stage, according to the global research and brokerage house, was characterised by unprecedented policy intervention, which