Most foreign investors are still overweight on domestic market despite the minimum alternate tax (MAT) issue and muted earnings growth, according to Swiss brokerage UBS. The global financial services firm also reiterated its Nifty target of 9,200 by December as it expects growth to gather steam from the second half of the year.
“We have met nearly 100 foreign institutional investors (FIIs) from the US, the EU and Asia over the last month and most of them remain overweight on the country, despite the MAT row which they termed as a negative surprises from the Modi government,” UBS analyst Gautam Chhaochharia said in a telecon. On growth, he said it will be gradual as the capex cycle is yet to pick up and public spending will take time since the government is still on a fiscal consolidation mode.