Indian equities have handily crushed their Chinese friends in 2023, however some strategists are flagging the potential of a short-term position reversal because the yr attracts to an in depth.

A widening valuation hole between the world’s two greatest rising markets is widespread chorus for Societe Generale SA, UBS Group AG and Jefferies Financial Group Inc., who say the outlook for India’s returns has turn into much less rosy. A preferred destination for traders this yr, the nation additionally faces uncertainty going into elections in 2024. Meanwhile, China’s rising support for its financial system and markets is seen offering a tailwind for its struggling shares.