BNP downgrades Indian stocks on policy

Aug 28 2012, 10:17 IST
Comments 0
SummaryBNP Paribas says policy reforms may be delayed until after general elections in 2014

BNP Paribas downgraded Indian stocks to neutral from overweight, saying policy reforms may be delayed until after general elections in 2014 due to a deadlocked government and high inflation.

However, the brokerage said the downgrade was only to neutral because India has a strong positive correlation with commodity prices, so it is likely to be at least an in-line performer during 'risk-on' periods.

BNP said in a note on Tuesday 38 percent of Indian stock market earnings are derived from global cyclical sectors.

Ads by Google

More from Business

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...