Not the right time to go 'overweight' on India: HSBC

Global investment bank HSBC has held on to its "neutral" weighting on India, saying the valuations still look high and foreign mutual funds are still "very overweight" on Indian shares.

The bank estimates MSCI India trades at 16.5 times 12-month forward earnings against a long-term average of 15 times.

HSBC on Tuesday called the Indian shares the second most expensive in Asia ex-Japan, after the Philippines.

"Is it time to overweight India? We don't think the time is right yet for us to change our neutral weighting," the bank said.

(Reuters)