Goldman Sachs just bumped up Indian equities to "overweight," saying now's a smart time for investors to look at Asia.
The bank expects Asian stocks to deliver a solid 19% return by 2027, and recent market dips could be good entry points.
Alongside India, it has also upgraded Chinese H-shares, while still backing South Korea and Japan.
Goldman Sachs warns despite Asia gains
The optimism comes from strong company earnings in the region, with the MSCI Asia ex-Japan Index still up 11% this year despite some ups and downs.
But Goldman isn't ignoring risks: there are worries about slower economic growth, possible US rate hikes, and uncertainty around artificial intelligence investments, as well as elevated corporate and equity issuance that could put pressure on market liquidity and increase funding costs.
So while the outlook is upbeat, it is suggesting investors keep an eye on the bigger picture.