HSBC downgrades India to neutral

Herald van der Linde, HSBC: We are approaching an inflection point that will determine if financial markets, including Asia can stabilise and start an erratic recovery phase in the weeks ahead. Conversely, we could be in a lull before financial markets slump if the European fiscal crisis intensifies. We have downgraded India to neutral and removed Dr Reddy's, while retaining Titan Industries.

Sanjeev Prasad, Kotak Institutional Equities: The steep correction in global crude oil prices and reluctance of global central banks to stimulate their economies through unconventional monetary policies provide India with a window of opportunity to resolve its domestic issues. However, fair valuations, dysfunctional politics and problems in several domestic sectors prevent us from taking a more positive stance. We stay defensive.