Global liquidity firmly perched in India's favour: MS
Ridham Desai of Morgan Stanley says global liquidity is firmly perched in India's favour. According to him, if the fall in commodity prices is sustained, it creates the possibility of a shift in local savings and a fall in short rates, much to the benefit of equities.
April 25, 2013 / 10:11 IST
Here are experts equity calls for the day on how the markets are expected to trade:
Sakhti Siva, Credit Suisse: With MSCI Asia ex-Japan trading close to its trough valuations, it is encouraging to see a small upgrade to 2013 consensus estimates. If these upgrades are sustained, we believe it could be a powerful catalyst to reverse the Asia & Emerging Market underperformance versus global equities since late 2010. Within India, we are Overweight on HCL Tech.Ridham Desai, Morgan Stanley: The absolute case for equities is strong as valuations are in the buy zone, earnings expectations are low and sentiment is still fragile. Global liquidity is firmly perched in India's favour. If the fall in commodity prices is sustained, it creates the possibility of a shift in local savings and a fall in short rates, much to the benefit of equities. India's moderately above average relative valuations may keep its performance in line with Emerging Markets. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
