Credit Suisse downgrades India to underweight on soaring crude oil prices

Global research and brokerage house Credit Suisse has downgraded Indian equities from ‘overweight’ to ‘underweight’ citing soaring oil prices that hit a 14-year high of over $140 a barrel in trade on Monday.

“Because of its strong structural prospects and robust EPS momentum, we will look for opportunities to re-enter the market, but today we tactically cut our India position from overweight to underweight. Higher oil prices hurt the current account, add to inflationary pressures and increase sensitivity to Fed rate hikes,” wrote Dan Fineman, co-head of equity strategy for Asia-Pacific at Credit Suisse in a coauthored note with Kin Nang Chik.