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Investor pessimism in India overdone: Deutsche Bank

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First published: March 25, 2013, 3:15 PM IST | Updated: March 25, 2013
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Investor pessimism in India overdone: Deutsche Bank
The bank says its top picks remain Axis Bank Ltd, Bank of Baroda, Larsen & Toubro Ltd among others.

Mumbai: Deutsche Bank believes the recent investor pessimism in India is overdone and sticks to its BSE Sensex target of 22,500 by the end of December. Deutsche says the government may shift to executive decisions to pass its agenda, focusing on actions that do not require parliamentary approval, thus reducing concerns about its reform agenda after a key ally withdrew from the ruling coalition.

The bank also expects government spending to return in the new fiscal year starting in April, thus easing liquidity shortages.

The infrastructure sector could also see a pick-up in activity after the approval process for environmental and forest clearances was de-linked, while noting that stalled projects will be a focus for the government.

Deutsche adds the government could announce next month an increase in domestic gas pricing, accelerating new investments in oil and gas exploration, while also announcing measures friendly to exporters.

The bank says its top picks remain Axis Bank Ltd, Bank of Baroda, Larsen & Toubro Ltd, Maruti Suzuki India Ltd, Punjab National Bank, Reliance Industries Ltd, Tata Consultancy Services Ltd and UltraTech Cement Ltd.

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