JP Morgan, Deutsche Bank upgrades Indian stocks to ‘overweight’

Discussion in 'Economy & Infrastructure' started by ejazr, Jun 28, 2012.

  1. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

    Oct 8, 2009
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    Hyderabad and Sydney
    Deutsche Bank upgrades Indian stocks to ‘overweight’ - Money Matters -

    Mumbai: Deutsche Bank upgraded Indian stocks to “overweight” from “neutral” saying the market is close to its cheapest in two decades on an EBITDA and sales perspective.

    The upgrade comes after J.P.Morgan upgraded Indian stocks to “overweight” last week.

    “The angst over falling Indian economic growth is so yesterday,” wrote strategist Ajay Kapur in the report dated on Wednesday.

    “We think a risk-on environment could see a return to value,” he added.

    Kapur said sentiment for India is “in panic mode” even as historical valuations have become attractive and technicals are robust.

    Deutsche Bank’s India strategists have an end-year target for the BSE index at 18,000 points. The index last gained 0.55% to 16,999.70 points.

    Meanwhile, Standard Chartered said that it sees an upside in some Indian stocks in which bad news have had a “disproportionate impact”.

    The bank identifies potential gainers as: ACC and Ambuja Cements ; mobile operators Bharti Airtel and Idea Cellular ; gas utilities Petronet LNG and GAIL ; road builder IRB Infrastructure ; and tyre maker Apollo Tyres.

    By contrast, drug makers Sun Pharmaceutical Industries and Cipla have not priced in enough of the potential impact from the government’s move to more closely regulate drug pricing.

    “The current despair” over governmental and institutional decision making has led to “irrational fears” and/or “stocks being pummelled multiple times for the same news,” StanChart says.
  3. Galaxy

    Galaxy Elite Member Elite Member

    Aug 27, 2011
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    Their 8/10 analysis are wrong. They upgraded "Overweight" in 2010 and market came down in 2011. :rofl:

    They are good for nothing. When they want to increase their allocation in Indian equity market, normally they recommend to Sell and vice-versa. Anyone who will follow their recos (Free one), that investors is going to bankrupt. Check their pathetic track record. May be they deliberately mislead others for vested interest! A 10th pass gujju knows more about market than these armchair analyst.
    Last edited: Jun 28, 2012
  4. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

    Nov 16, 2009
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    Deutsche has its reasons, their unsecured revenue stream is doing far better than expectations.

    Sent via Tapatalk from a galaxy far far away

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