Do not see material risk to govt falling due to TMC: Kotak

Chris Wood, CLSA: The policy announcements in India, if implemented, are positive for the stock market and the currency. Though, it would have been far better if the decisions had been made many months ago. In our view, resolving the gridlock in the power sector remains the critical pre-requisite before there can be renewed confidence in a new investment cycle, which is what is required for the Sensex to become a star performer again.

Sanjeev Prasad, Kotak Institutional Equities: We do not see material risk to the government falling due to the Trinamool Congress withdrawal from the United Progressive Alliance. The reality of Indian politics will demand a more subtle approach to reforms and perhaps even populism. We recommend selling low quality high beta names in the current rally. Our top sell ideas are BHEL, Bank of Baroda, Punjab National Bank, Larsen & Toubro, Hindalco and Reliance Industries.