Overweight on India, China: Macquarie

Viktor Shvets of Macquarie said, "We continue to remain overweight China and India. While we share the market's concern that revised official estimates lack credibility, India's productivity growth rates remain some of EMs best, despite limited structural reforms.""Also, although banking remains clogged and the public sector has limited fiscal flexibility, overall leveraging remains low. Finally, India has some of EMs best managed and outwardlooking corporates.""Unlike China, the challenge is India's inflated EPS estimates, but like China it has emerged with lower than average macro vulnerability," he added.