Thanks to weak earnings, Indian equity markets will give a flat to slightly negative return near term, but over the next 6 to 9 months, BofAML analysts remain positive.
Anand Kumar and team at Bank of America Merrill Lynch in their May 20, 2015 research report titled: “Year II: How to position” anticipate banks will be the key beneficiary of lending rate cuts.
Indian earnings to improve late 2015
According to the BofAML analysts, though the 1-year old Modi government has undertaken a few reforms, market expectations had been high. They point out that contrary to common market expectations, in the first year of the Modi government, defensive sectors like pharma did the best, while the high beta real estate sector...
