Reuters Market Eye - Credit Suisse says "overweight" on India, noting return on equity in the country could be at an "inflection point" after three consecutive months of upgrades in consensus earnings-per-share (EPS) forecasts.
Cyclicals could continue to outperform defensive stocks, adds the investment bank.
"We believe valuations, EPS revision trends, and rises in US bond yields and the ISM (Institute for Supply Management) suggest cyclicals could have further to outperform," Credit Suisse says in the report dated Thursday.
Its top picks in Asia ex-Japan portfolio include HCL Technologies Ltd (HCLT.NS), Wipro Ltd (WIPR.NS), Tata Motors Ltd (TAMO.NS), Reliance Industries Ltd (RELI.NS), Sesa Sterlite Ltd SESA.NS and Cairn India Ltd (CAIL.NS).
(Reporting by Abhishek Vishnoi)
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With the Nifty breaching 8,500, sentiments are again bullish. But markets have been in the 8,200-8,600 range for some time and stocks across the board do not give the required confidence except for the liquidity factor. Many frontline stocks are not participating on the upside and the core sector is in a downtrend, writes Ambareesh Baliga. Column