HSBC maintains "overweight" rating on Indian stocks, but says country now behind China and Taiwan in its preferences.
HSBC says valuations still remain supportive at 13.5 times forward earnings, and maintains its year-end target of 19,300 for Sensex (vs 17,130.67 close on Thursday).
Foreign flows will be key, HSBC says, adding trading volumes by foreign institutional investors have "crashed" after the government introduced a proposal to tax certain foreign investments in the fiscal 2013 budget unveiled in mid-March.
HSBC's top picks include ITC , Bharti Airtel , Maruti Suzuki
READ MORE ON HSBC, Indian stocks, China, Taiwan, Sensex, ITC, Bharti Airtel, Maruti Suzuki, Titan Industries, Housing Development Finance Corporation, LIC Housing Finance, ICICI Bank, Power Grid, Coal India, Jaiprakash Associates, Dr.Reddy's Laboratories, Tata Consultancy Services
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