Jun. 21 – China’s stocks received an upgrade from “neutral” to “overweight” while Indian stocks were downgraded from “overweight” to “underweight” in a report by BNP Paribas released on Jun. 20 which rated national bourses based on the expected performance of their respective market over the next 12 months.

“The change in preference for China over India reflects our view that the Indian market has priced in many of the positive factors we have been highlighting,” analysts for BNP Paribas wrote in the report. “While these structural factors have not gone away, pessimism over the prospects for China have opened up a valuation gap.”

The elevation of China’s stock market rating is the first time the Paris-based bank has raised its rating for the country since it downgraded it on Jun. 4 of last year.

BNP Paribas set a 12-month estimate for India’s Sensitive Index at 19,700 and the key indicator responded by rising 1.75 percent to 17,879.14 on Monday. Similarly, the Shanghai and Shenzhen key indices both gained 2.9 percent on the day, up to a respective 2586.21 and 1041.33, as China began the long anticipated revaluation of the renminbi.