Morgan Stanley cuts India's equity ratings

Bangalore: Morgan Stanley downgraded South Korea, India and Turkey equities and upgraded Israel, Hungary and Egypt.

The investment bank said it cut South Korea to 'equal-weight' from "overweight" to reflect concerns over its upgrade to developed-market status.

Morgan Stanley cut both India and Turkey to 'underweight' from 'equal-weight'.

"India's and Turkey's downgrades follow more than 24 per cent outperformance since last month. This has led to a reversal of their technically oversold position and a deterioration in valuation rankings," Morgan Stanley said in its global emerging markets equity strategy note.

It upgraded Israel to 'overweight' from 'equal-weight' and Hungary and Egypt to 'equal-weight' from 'underweight'. It kept its 'overweight' recommendation on Russia.

The investment bank removed Sasol, Hyflux, China Mobile and Posco from its focus list, while adding Cathay Financial , Doosan Heavy Industries, Naspers and TSMC to it.