January 16, 2013 / 9:03 AM / 5 years ago

MARKET EYE-Macquarie says Indian 'elephant' to turn 'tiger'; ups Sensex target

* Macquarie says Indian 'elephant' to turn 'tiger' in 2013; ups 
BSE index target to 22,200 versus 21,600 earlier and
NSE 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, State Bank of India and
property developer DLF to its top 10 ideas, replacing
ICICI Bank Dr.Reddy's Laboratories and HDFC
Bank.

 (manoj.dharra@thomsonreuters.com;
manoj.dharra.thomsonreuters.com@reuters.net)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below