Wednesday, April 10, 2013

Credit Suisse spikes crisis talk in Indian stock markets, says bargain-hunt


Credit Suisse spikes crisis talk in Indian stock markets, says bargain-hunt 


Credit Suisse says Indian stock markets are unlikely to face a crisis and recommends selective bargain-hunting, despite what it notes is "extreme defensiveness" in market consensus. BSE Sensex shares fell for a fifth consecutive session on Tuesday on concerns that foreign investors are paring their holdings ahead of what are expected to be lacklustre earnings reports this month.

* "Market consensus has now veered towards extreme defensiveness, and phrases like 'currency crisis' and 'meltdown' are being bandied about," Credit Suisse writes in in a note dated on Tuesday.

* "But we also believe a crisis is unlikely: bargain-hunting selectively makes sense."

* Credit Suisse says the broader market "doesn't look attractive yet" given its expectations for around a 10 percent downside in fiscal 2014 earnings and the continued chances of meaningful corrections in large sectors such as financials.

* However, the investment bank recommends selective buying in shares and highlights its preference for NTPC Ltd, Cairn India Ltd, Ambuja Cements Ltd, Reliance Industries Ltd, and Sterlite Industries (India) Ltd.

* Credit Suisse also says its prefers Tata Motors Ltd HCL Technologies Ltd and Bank of Baroda.

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