Deutsche Bank upgrades Indian stocks to 'overweight' - Money Matters - livemint.com
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.
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.
