India looks vulnerable to profit-taking in the short term after recent outperformance, rising oil prices, and seasonally tighter monetary conditions, UBS says.
The bank said in note that it would still be a buyer of Indian equities on weakness as "the underlying fundamental story is intact". UBS said India was still not expensive relative to its regional peers. It said inflation should come down and policy easing should continue unless there is a shock in oil prices.
(Copyright Thomson Reuters 2012)