JP Morgan view of Indian Stock Market

Biggest uncertainty related to Europe; situation in Asia closely linked to monetary tightening; expect bottom up stock picking in 2010 in Indian mkts: JPMorgan Securities

Sunil Garg, MD, Head-Asia Banks & Fin Svcs at JPMorgan Securities said that the biggest uncertainty is related to Europe. The correction started with the fear of monetary tightening. He could see some more uncertainty over the short-term.

He further said that the situation in Asia is closely linked to monetary tightening. Inflation has returned faster in Asia. He expect bottom up stock picking in 2010 in Indian markets. He is overweight on India and feels that Indian market is stock picker’s market.

He feels that interest rates are likely to go higher in India. Monetary policy is likely to tighten further. Credit growth & quality will be key drivers, he added.

Source:  Moneycontrol.