IT shares gain on weak rupee, recent underperformance
Sep 17 2013
"Recent announcements over the FCNR-B, supportive trade data and easing investment facilitation in debt markets have resulted in imparting long needed and much sought after credibility over both - the financing of the CAD and the actual CAD," says Deutsche bank in a report.
The bank adds since the global financial crisis, bouts of sharp currency depreciation in India have generally been followed by periods of strong FII inflows into equities.
Deutsche advises investors to focus on global recovery plays, rupee depreciation beneficiaries like Hindalco Industries Ltd (HALC.NS), Tata Consultancy Services Ltd (TCS.NS) and rural plays like ITC Ltd (ITC.NS) and HDFC Bank Ltd (HDBK.NS).