Salient to Investors:

Sampath Reddy at Bajaj Allianz said offshore investors will buy more Indian equities after India opened its retail and aviation industries to foreigners.

Bloomberg estimates foreign funds bought a net $13.4 billion of Indian shares so far in 2012, second only to China in Asia.

Aditya Narain at Citigroup raised its June 2013 target for the  BSE India Sensitive Index – the Sensex – by 8 percent to 19,900 on increased foreign inflows. Deutsche Bank increased its year-end 2012 target by 11 percent to 20,000.

Taina Erajuuri at FIM Asset Management said global funds must raise their weighting on Indian equities after the investment proposals or else underperform.

The Sensex trades at 14.7 times estimated earnings versus 16.2 times in February and 11.3 times for the MSCI Emerging Markets Index.

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