Deutsche Bank: Axis Bank, Tata Steel, Yes Bank, Cummins, ICICI Bank, JSW Steel, DLF, SBI, Reliance Industries, and L&T are the preferred picks for now.
Bank of America Merrill Lynch: Focus on high beta stocks which have underperformed year-to-date. Buy stocks stock like DLF, IRB & Nagarjuna Constructions. Buy rate sensitive names that appear to have more value fundamentally like Maruti, Jaiprakash Associates and ICICI Bank.
Morgan Stanley: We go underweight on consumer staples and raise energy and materials to overweight. We trim technology (IT stocks) by 100 basis points (1 per cent) in portfolio.
Citigroup: Overweight on rate cyclicals such as banks, autos, and capital goods.
Religare: Top picks are ICBK, L&T, RIL, and SBI.
HSBC: Buy SpiceJet in aviation. Buy CESC & DLF as proxies for retail and potential demand for commercial space.
UBS: Overweight on banks (add ICICI and Muthoot), infra (increase weight in L&T), and oil and gas (increase weight in Cairn). Turn underweight on defensives like consumers, pharma and power.
JP Morgan: Argue that symbolic impact is more important than direct bear-term benefits. Valuations are inexpensive (at 13-times 1-year forward earnings). Leave scope for re-rating as government stays the course. The reforms put in place building blocks for a sustained economic recovery.
Goldman Sachs: In the near term, reforms may change the deeply negative corporate and investor sentiment, but we do not think it will materially change the worsening growth-inflation trade-off.
Kotak Securities: Government's actions are unlikely to address India’s structural and macro-economic challenges. Ad hoc fuel price hikes and small stake sales in PSUs are not substantial reforms.
Disclaimer: Investors are advised to make their own assessment before acting on the information.
