Credit downgrade for the US by S&P and fiscal distress in Eurozone have clearly dominated sentiment across world markets. Indian equities were no exception and suffered over the past three weeks, correcting 7.5%. While many headwinds prevail and will continue to impact the Indian economy in the medium term, the extent of the fall in equities has made valuation reasonably attractive; Nifty is trading at 12.5x FY13E earnings. Furthermore, crude prices have cooled off and the RBI is likely to maintain status quo in next meet. News reports also indicate towards a possible surprise by the government on the policy front. Already, the CoS has recommended 51% FDI in multi-brand retail while urea decontrol has been cleared by a GoM. We can expect a relief rally in the near to medium term taking the Nifty to 5400 levels.


Buy Following Stocks with SL as per your wish/risk bearing capacity


AxisBank 1,200 Target 1250-1350-1575
Hindalco 151 Target 202
ICICI Bank 935 Target 1000-1100-1275
ITC 198 Target 232
Lupin 453 Target 520
M&M 740 Target 775-800-820
Manappuram 53 Target 77
Tata Motors 801 Target 850-911-1025
TCS 951 Target 1000-1071-1180