CLSA had reduced its Indian overweight to 10 per cent from 20 per cent and raising our China allocation to a 5 per cent overweight from the benchmark.

A new report by CLSA suggests India is emerging as one of the least affected markets by former U.S. President Donald Trump's trade policies. This resilience is attributed to India's low trade exposure to the U.

CLSA has reversed earlier allocation, increasing India and cutting China, even as India faces sustained foreign investor outflows. It said several global investors have been waiting for a correction to re-enter the Indian markets.

Read why has CLSA reversed its allocation strategy, raising investment in Indian equities while cutting China exposure.

In just over a week since Donald Trump won the US Presidency, Hong Kong-based brokerage firm CLSA raised its India allocation to a 20 per cent overweight, while cutting exposure to China. This is seen as a tactical reversal from its early October update when it went ‘overweight’ on China following Beijing’s first stimulus on September 24.

MUMBAI: Global brokerage CLSA has made a significant U-turn on its India cut-back plan, raising its India allocation to a “20 per cent overweight” in a tactical

CLSA, a foreign brokerage with a huge client base of funds investing in India, on Friday reversed its stand of being overweight on China and e.

In good news for the domestic stock market, global brokerage CLSA has shifted its tactical allocation to India from China,

China's recent economic woes, including trade tensions with the US and falling property prices, will likely continue to weigh on the Chinese equity market, it believes. In contrast, India is seen as a more attractive investment destination due to its strong economic growth and relatively low exposure to trade risks, CLSA said in a note.

"India appears as among the least exposed of regional markets to Trump's adverse trade policy. Moreover, so long as energy prices remain stable, India may offer a relative oasis of FX stability in an era of a strengthening US dollar" it said.

With Trumps win to US election 2024, higher yields and inflation expectations are sapping scope for Fed in rate cuts, and thus Peoples Bank of China (PBOC) is expected to ease its policy stance ahead.