Deutsche Bank maintains cautious view on Indian market

MUMBAI: Deutsche Bank has maintained its cautious view on the Indian market as it believes that the rally across global assets induced by the historically low interest rate environment may not sustain as strongly.

In the near term, commentary and actions of the US Federal Open Market Committee in their upcoming meeting on September 21 will set the tone for global capital flows.

India's domestic environment appears to be improving but earnings have not yet responded commensurately to a better macro environment, said Deutsche.

The bank added that India will not stay immune in the event of any global risk contraction but it will outperform other emerging market peers.

The bank has a Sensex target of 27000 points by the end of this year. Deutsche Bank is overweight on consumer staples, discretionary, energy, healthcare and utilities. It is underweight on IT, industrials, materials and telecom.