Macquarie raises Sensex target to 22,200, says 'elephant' to turn 'tiger'
Reuters Market Eye - Macquarie says Indian 'elephant' to turn 'tiger' in 2013; ups BSE Sensex target to 22,200 versus 21,600 earlier and Nifty target to 6,900 points as against 6,600 previously.
Investment bank expects reforms push would take India to 8 pct per annum growth over the next three years, improving to 6.7 percent in FY14 from 5.6 percent projected in FY13.
Corporate earnings growth may surprise on upside around 16-17 percent as street not factoring in improvement in EBITDA margins with neither falling core inflation nor reduction in interest costs getting built in, the note says.
Cyclical sectors are even cheaper and are at 10-year low as compared to defensives, it says.
Adds Axis Bank (AXBK.NS), State Bank of India and property developer DLF (DLF.NS) to its top 10 ideas, replacing ICICI Bank (ICBK.NS) Dr.Reddy's Laboratories (REDY.NS) and HDFC Bank (HDBK.NS).
(Reporting by Manoj Dharra)
- Tweet this
- Share this
- Digg this
- U.S. strikes have slowed Iraq militants but not weakened them - Pentagon
- India Inc happy with Modi, but holding back on investment: poll
- Modi to launch plan for every Indian household to have bank account
- U.S. seeks coalition against Islamic State, but military partners no sure bet
- Modi eyes breakthrough nuclear pact on Japan trip
CEOs in India are optimistic that Prime Minister Narendra Modi will spur the economy, an opinion poll showed on Thursday, but most are not ready to make new investments and say there are no signs yet of improvement on the ground. Full Article
Adani buys Australia coal mine royalty rights from Linc for $145 million Full Article