BNP Paribas prefers mortgage lenders than retail-focused lenders, Manishi Raychaudhuri, Asian equity strategist, told CNBC-TV18.
“Non-banking financial companies (NBFCs), investors will have to trade cautiously because as a consequence of these lockdowns the retail borrowers have been affected. So, retail lending asset quality might get impacted and we might not have even seen it at this point in time. Therefore, we are playing this space through mortgage lenders,” he said.
On India, Raychaudhuri said, “We upgraded India back to an overweight from a neutral stance that we had earlier taken and this is predominantly because of what is happening in the region, possibly outside India as well; because of several rapid-fire policy changes, there is a degree of uncertainty in the Chinese market.”
“We think investors would possibly try to find out alternative investment avenues outside the greater Chinese region; Korea, Taiwan, India fits that bill. Therefore, this is one of the reasons why we upgraded India and we also think that the recovery from the second wave of COVID-19 has been far more rapid than we had earlier anticipated,” said Raychaudhuri.
For the entire interview, watch the video