In a recent note, global brokerage CLSA raised its 'overweight' on Indian stocks and cut its allocation on China in its Asia Pacific portfolio, reversing its switch from Mumbai to Shanghai in October in the wake of the run up in Chinese equities.

Read why has CLSA reversed its allocation strategy, raising investment in Indian equities while cutting China exposure.

China's recent economic woes, including trade tensions with the US and falling property prices, will likely continue to weigh on the Chinese equity market, it believes. In contrast, India is seen as a more attractive investment destination due to its strong economic growth and relatively low exposure to trade risks, CLSA said in a note.