Credit Suisse overweight on Indian shares, bets on cyclicals

WiproWipro Ltd stock is one of the top picks by Credit Suisse for Asia ex-Japan portfolio.

Credit Suisse says "overweight" on India, noting return on equity in the country could be at an "inflection point" after three consecutive months of upgrades in consensus earnings-per-share (EPS) forecasts.

Cyclicals could continue to outperform defensive stocks, adds the investment bank.

"We believe valuations, EPS revision trends, and rises in US bond yields and the ISM (Institute for Supply Management) suggest cyclicals could have further to outperform," Credit Credit Suisse says in the report dated Thursday.

Its top picks in Asia ex-Japan portfolio include HCL Technologies, Wipro, Tata Motors, Reliance Industries (RIL), Sesa Sterlite Ltd and Cairn India Ltd.

Please read our terms of use before posting comments
TERMS OF USE: The views expressed in comments published on indianexpress.com are those of the comment writer's alone. They do not represent the views or opinions of The Indian Express Group or its staff. Comments are automatically posted live; however, indianexpress.com reserves the right to take it down at any time. We also reserve the right not to publish comments that are abusive, obscene, inflammatory, derogatory or defamatory.