International brokerage Macquarie completed a roadshow in the European Union, meeting global investors and analysts.
Among the key findings, the brokerage noted that a large percent of global emerging markets fund managers who were previously 'underweight' on China have significantly upped their weightings.
However, it is tough for them to take a structurally positive long-term view on China, instead focusing on the short-term rally since it has further upside. To buy into the China story, Macquarie noted that some fund managers are trimming their overweight positions in India to buy China.
For the long-term, the view on India is far more constructive than that of China. Concerns arise on the near-term view, as slowing growth momentum is reflected through sputtering auto sales, tax collections or credit growth.
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As a tactical play, the fund managers are short on financials, especially banks and NBFCs. The brokerage noted that shareholders of ICICI Bank and HDFC Bank seemed 'nervous' and investors of Bajaj Finance saw near-term concerns. However, the consensus was 'overweight' on Shriram Finance.
Amongst public-sector lenders, investors showed lesser interest, even though SBI was the only PSU bank that some EU investors had across their portfolio.
On the domestic fintech front, Vijay Shekhar Sharma-led Paytm saw little interest, while investors weren't particularly enthused about PB Fintech's foray and investment into the healthcare sector.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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