Credit Suisse overweight on India, bets on cyclicals

Fri Jan 3, 2014 1:15pm IST

The Bombay Stock Exchange (BSE) building is reflected on a glass window as people look at a large screen displaying the Sensex on the facade of the building in Mumbai November 10, 2008. REUTERS/Arko Datta/Files

The Bombay Stock Exchange (BSE) building is reflected on a glass window as people look at a large screen displaying the Sensex on the facade of the building in Mumbai November 10, 2008.

Credit: Reuters/Arko Datta/Files

Related Topics

Stocks

   

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)

FILED UNDER:

Monetary Policy Committee

Reuters Showcase

Microfinance

Microfinance

Funding the unfunded: India helps small business borrow to grow  Full Article 

Insurance Sector

Insurance Sector

UK healthcare firm Bupa sees strong growth in India  Full Article 

Sensex Rises

Sensex Rises

Sensex edges up; consumer and healthcare stocks rise  Full Article 

Market Eye

Market Eye

FTSE adds nine Indian firms as large-caps in Asia-Pacific ex-Japan index   Full Article 

Indian Ocean Diplomacy

Indian Ocean Diplomacy

PM Modi to ramp up help for Indian Ocean nations to counter China influence  Full Article 

ECB Bond-Buying

ECB Bond-Buying

ECB raises growth forecasts, to start printing money next week  Full Article 

China Economy

China Economy

China signals "new normal" with lower annual growth target  Full Article 

Pharma Sector

Pharma Sector

Panel recommends waiving late-stage trials for some drugs  Full Article 

E-commerce

E-commerce

China backs e-commerce expansion in win for Alibaba, JD.com  Full Article 

Reuters India Mobile

Reuters India Mobile

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