Macquarie raises Sensex target to 22,200, says 'elephant' to turn 'tiger'

Wed Jan 16, 2013 3:45pm IST

People walk past the Bombay Stock Exchange (BSE) building in Mumbai May 18, 2009. REUTERS/Punit Paranjpe/Files

People walk past the Bombay Stock Exchange (BSE) building in Mumbai May 18, 2009.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

Stocks

   

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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage