Retain cautious stance, overweight on energy & pharma: Deutsche

Abhay Laijawala of Deutsche Bank says the brokerage house continues to maintain cautious view on the market, primarily driven by its belief that the negative/historically low interest rate environment induced risk rally across global assets might not sustain as strongly.

In the near term, the commentary/actions of Federal Open Market Committee (FOMC) in the upcoming meeting on September 21 will likely set the tone for global capital flows, he feels.

He says while the domestic environment for India appears to be improving, earnings have not yet responded commensurately to a better macro environment.

The brokerage house has maintained a December 2016 Sensex target of 27,000.

"We suggest overweight on consumer staples, discretionary, energy, healthcare, and utilities. Underweight sectors are IT services, industrials, materials, and telecom," Laijawala says.