Indian equity market is likely to perform well in 2012 underpinned by the expectations of monetary easing by the RBI coupled with steps likely to be taken by the government for fiscal consolidation, Deutsche Bank said in a report.
Besides, government's perceived urgency in addressing policy issues, expectation of better earnings by corporate houses and an increasing global risk appetite will supplement the prospects of the equity market in the country, it added.
The report, however, noted that spike in oil prices due to geopolitical tensions remained the key area of concern for the markets.
"The month of March will be critical in setting a direction for Indian equity markets for the rest of the year as three key events namely state election results, RBI policy meeting and the Union budget, will have a strong bearing on market sentiment and policy landscape," Head of Research of Deutsche Bank's India equity research team, Abhay Laijawala told reporters here.
Referring to budget expectations, the report said that the union budget would be guided by fiscal consolidation through subsidy rationalization, withdrawal of fiscal stimulus among others.
The budget is also likely to stimulate investments with more retail participation, it added.
The report pointed out that while it is underweight on both consumer staples and consumer discretionary sectors, it is overweight on rate-sensitive sectors and infrastructure stocks.
"Based on the expectation of withdrawal of fiscal stimulus in the union budget, the strategy team is underweight on both the consumer staples and consumer discretionary sectors. Also, easing monetary policy and given a focus on capital formation by the government will be positive for rate-sensitives and infrastructure stocks. Accordingly, Deutsche is overweight on banks, real estate and select infrastructure names," it said.
04/01/14 - World Trade Center (WTC) Mumbai foi estabelecido há mais de quatro décadas atrás, para promover e facilitar o comércio da Índia com o mundo. Mumbai tem regularmente recebimento e enviado missões comerciais, organizando matchmaking business (B2B), eventos para o benefício dos seus Estados e hospedagem para delegados estrangeiros. O tema da 4 ª Conferência Económica Global [...]
04/01/14 - World Trade Centre (WTC) Mumbai was established more than four decades ago, topromote and facilitate India’s trade with the world. Mumbai has been regularly receiving and sending trademissions, organizing business matchmaking (B2B) events for the benefit of its membersand hosting overseas delegates. The theme of the 4th Global Economic Summit is the rise of Asia as [...]» More events