BofA-Merrill says Sensex to remain range-bound

Mon Jul 15, 2013 5:11pm IST

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai July 23, 2008. REUTERS/Punit Paranjpe/Files

Brokers trade on their computer terminals at a stock brokerage firm in Mumbai July 23, 2008.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

Stocks

   

Reuters Market Eye - Bank of America-Merrill Lynch expects the BSE Sensex to remain range-bound with limited upside of 5 percent until regional elections in mid-November and given the prospect of "sluggish" GDP and earnings growth.

Still, the bank recommends investors be ready to buy on dips at BSE levels of 19,000-19,300 points.

The bank highlights rupee stabilisation at around 60 to the dollar, a normal monsoon, and potential of rate cuts later in the year are supportive of shares.

BofA-Merrill's model portfolio continues to be driven by sectors that would benefit from rupee weakness such as drug makers and interest rate sensitive stocks such as autos and banks. It also remains overweight on telecom shares.

BofA-Merrill's top buys currently are: Lupin (LUPN.NS), Hero MotoCorp (HROM.NS), ICICI Bank (ICBK.NS), HDFC Bank (HDBK.NS) and Idea Cellular (IDEA.NS).

Its top sells are: Bajaj Auto (BAJA.NS), Ranbaxy Laboratories (RANB.NS), Hindustan Unilever (HLL.NS), NTPC (NTPC.NS) and Adani Power (ADAN.NS).

(Reporting by Abhishek Vishnoi)

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

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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