* With Sensex already up sharply this year,the impact from any potential QE3 (potential third round of quantitative easing) might be more muted since some of the easing hopes may already be priced in,CLSA argues in a note on Wednesday.
* CLSA adds previous instances of monetary stimulus have had diminishing impact on Indian equities,although financials have outperformed.
* The brokerage raises its overweight stance on Indian drug makers in its model porftolio by adding Sun Pharmaceutical Industries and Cipla,while removing Dr.Reddy’s Laboratories.
* Also removes Tata Steel from its model portfolio,while replacing BHEL with Adani Ports.
* Private sector banks remain overweight,but CLSA replaces IndusInd Bank with cheaper Axis Bank.
* Finally,CLSA raises IT services to neutral in its portfolio,raising the weightings of Infosys,while increasing its weighting of ITC despite keeping consumer staples at underweight.
Stocks More on Adani Ports
Company INFO More on ITC