A new report by CLSA suggests India is emerging as one of the least affected markets by former U.S. President Donald Trump's trade policies. This resilience is attributed to India's low trade exposure to the U.

In just over a week since Donald Trump won the US Presidency, Hong Kong-based brokerage firm CLSA raised its India allocation to a 20 per cent overweight, while cutting exposure to China. This is seen as a tactical reversal from its early October update when it went ‘overweight’ on China following Beijing’s first stimulus on September 24.

CLSA said it committed funds at the start of October by tactically deploying some of its over exposure on India to China. It has now reversed that trade, Both MSCI China and India have corrected by 10 per cent in US dollar terms over the duration.

CLSA reverses its investment shift from India to China, citing economic concerns in China, trade tensions, and rising U.S. yields. It increases India exposure, despite risks like market issuance surge.

CLSA reversed its shift from Indian to Chinese equities after Trump's re-election raised trade war concerns. The brokerage cited limited gains from China's stimulus and rising US yields, reinstating a 20% overweight on India.