Credit Suisse downgrades Indian equities due to surge in crude oil prices

New Delhi [India], March 8 : Global brokerage firm Credit Suisse on Tuesday downgraded Indian equities markets to 'underweight' from 'overweight' saying the high crude oil prices would lead to inflationary pressures and hurt the current account.
"Because of its strong structural prospects and robust EPS momentum, we will look for opportunities to re-enter the market, but today we tactically cut our India position from overweight to underweight," Credit Suisse said in a research note.
Dan Fineman, co-head of equity strategy for Asia-Pacific Credit Suisse, said in the report that India is the most vulnerable among the Asian markets due to the higher oil prices.
"Higher oil prices hurt the current account, add to inflationary pressures and increase sensitivity to Fed rate hikes," Credit Suisse noted in the report.
The Indian stock markets key indices slumped for the fifth straight session on Tuesday with benchmark Sensex sliding 380 points.