Global brokerages bullish on Indian stocks despite poll-related uncertainty

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Thus far in calendar year 2019 (CY19), Indian benchmarks have underperformed major global indices with a rise of around 1.8 per cent

Puneet Wadhwa  |  New Delhi  Last Updated at March 11, 2019 11:21 IST

Foreign brokerages such as HSBC, and have turned bullish on despite the election-related uncertainty. In its recent report, for instance, has raised its weightage on India from ‘neutral’ to ‘overweight’ and remains bullish on financial, metal, and consumer discretionary sectors in the Indian context.

“Aside from the elections, the macro backdrop is looking better in 2019 than in 2018. Inflation is low, and our economists are now looking for a rate cut in April. We expect overall GDP (gross domestic product) growth to accelerate, possibly supported by reforms (such as GST) starting to bear fruit,” wrote Herald van der Linde, head of equity strategy for Asia Pacific at along with Devendra Joshi and Prerna Garg in a recent report.

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Adding: “Earnings growth remains one of the strongest across the region. And India is under owned – indeed, it one of the two largest underweight across the region as the moment. All this put together makes the case for being constructive on Indian market, in our view.”

Thus far in calendar year 2019 (CY19), Indian benchmarks have underperformed major global indices with a rise of around 1.8 per cent. Nasdaq Composite, CAC 40, Hang Seng, S&P 500, DJIA, FTSE and the Karachi 100 have gained higher in the range of 6 per cent to 12.1 per cent during this period.

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Going ahead, analysts at BNP Paribas,

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