May 20, 2013, 09.15 AM | Source: CNBC-TV18
Ridham Desai of Morgan Stanley expects the Sensex to rise 14 percent by the end of 2013. He says they prefer cyclicals over defensive sectors.
Ridham Desai (more)
MD & Head of India Research, Morgan Stanley | Capital Expertise: Equity - Fundamental
Ridham Desai, Morgan Stanley: We see an upward trajectory for equities on the back of the earnings cycle, valuations, real rates, global liquidity, and hesitant sentiment. The potential headwinds remain FII ownership, the political cycle and complacency about tail risks. We expect the Sensex to rise 14 percent by the end of 2013 and we prefer cyclicals over defensive sectors.
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Abhay Laijawala, Deutsche Equities: With inflation declining sharply, further rate cuts should assuage concerns over asset quality and should drive treasury gains on bond portfolios. Consequently, we maintain our overweight stance on banks and financials. We are also overweight on energy and industrials. Our top picks are ICICI Bank , PNB , ONGC , Reliance Industries , L&T , NTPC and Ultratech Cement .