In a world struggling for growth, India stands out. Promising medium-term prospects come from an extremely low base, and a stark improvement in state-level governance. Credit Suisse economists project India to see the fastest USD nominal GDP growth in 2015, with the growth gap between India and the rest of the world expanding.
CS Views on Global Linkage,
The overall economic impact of lower commodity prices is likely to be slightly positive, but nowhere close to the euphoric consensus views. For the markets, there are two conflicting forces at play—while Indian markets are much more globally linked than the economy, the return of deflationary fears in DMs is likely to drive more QE.
CS Analysts believe the market is likely to continue to pay more for growth, and the Indian market is not expensive yet. It’s likely to see the strongest earnings growth, with among the least severe downward revisions. CRedit Suisse’s Top Picks in India are – Gujarat Pipavav, Havell’s, HCLT, HDFCB, Kajaria, Maruti, STFC and Sun Pharma.
Separately, Goldman Sachs is also OVERWEIGHT on India with a NIFTY target of 9,500 a decent 15% expected return on the Benchmark which translates into around 20% Yield on Diversified basket of Equity Fund.