According to a report in NDTV, despite the sharp correction seen in recent times, foreign brokerages CLSA and Barclays are optimistic on Indian markets over the long term.
CLSA is reported to have stated that the long-term story for Indian equities remains intact on account of structural positives of lower inflation and positive demographics. However, it has warned of short-term pain from earnings disappointments. From longer term perspective, CLSA sees 16-18 per cent corporate earnings growth over FY18-19 and sees markets to deliver a cumulative 30 per cent-plus return by September 2017.
CLSA’s top stock picks are: Bharti Airtel, ICICI Bank, HDFC Bank, Larsen & Toubro, Maruti Suzuki, UltraTech Cement, PVR and Zee Entertainment.
Barclays is reported to be optimistic on an earnings recovery in second half of current financial year. It adds that fiscal policy is beginning to turn supportive.
Barclays’ top stocks picks are: Axis Bank, Container Corp, Dr. Reddy’s Labs, HDFC Bank, Maruti Suzuki, State Bank of India, Tata Motors, Titan and Ultratech Cement.
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