Saturday, October 8, 2011

Citigroup upgrades India to 'Neutral' from 'Underweight'

Citigroup has upgraded India to 'Neutral' form 'Underweight' citing better return on equities and sharp fall in valuation premiums due to recent underperformance.

In its note on emerging markets, the Wall Street bank said the upgrade was mainly on the back of India's status as a major commodity importer as prices fall, lower valuations, a short-term peak in interest rates and high return on equity.

"India is the only Asian market where the dividend/bond yield ratio is below its 10-year average," Citi said in a note to its clients adding it preferred banking, technology and infrastructure stocks. The benchmark index provisionally closed up 2.72 percent at 16,222.69 points.

Source: www.economictimes.com

Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd

No comments:

Post a Comment