Narendra Modi govt can raise capex by 1.2 pct of GDP in budget: Credit Suisse

Indian government can raise capex by at least 1.2 pct of GDP in FY16, even as the market worries about fiscal stress in FY15, says Credit Suisse.

Says govt pocketing a large part of gains from oil price fall and can spend to generate growth.

Credit Suisse adds spends on national highways, rural roads, railways, and rural and urban housing likely.

Prefers cement, paints and construction stocks as higher spending on roads and housing should drive demand.

Upgrades UltraTech Cement and Asian Paints to “outperform” from “neutral”.

Says Larsen & Toubro should reverse underperformance since elections.

Raises Axis Bank’s target to 680 rupees from 593 rupees on improved loan growth.