Moneycontrol
May 31, 2016 10:23 PM IST | Source: Moneycontrol.com

Credit Suisse lists 7 stocks on buy list; says no risk-on rally

Indian equities are now trading a little over 17 times one-year forward earnings, which many experts feel is expensive given the patchy recovery in the economy and a slower-than-expected recovery in earnings

Credit Suisse lists 7 stocks on buy list; says no risk-on rally
Moneycontrol Bureau

Brokerage house Credit Suisse says the Indian’s market’s one-year forward index (aggregate) earnings per share looks set to rise after nearly one-and-a-half years of stagnation.

“This expectation is likely the reason index P/E is high,” writes Credit Suisse’s India Equity Strategist Neelkanth Mishra.

Indian equities are now trading a little over 17 times one-year forward earnings, which many experts feel is expensive given the patchy recovery in the economy and a slower-than-expected recovery in earnings.

“We would, however, refrain from calling this a risk-on rally yet, and focus on EPS growth,” writes Mishra.

Credit Suisse’s top picks are ICICI Bank, Larsen & Toubro, BPCL, Tata Motors, Hindustan Unilever, HDFC and Shriram Transport Finance.

The brokerage is bearish on state-owned banks, Bharti Airtel and most capital gods companies.
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