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Credit Suisse said appointment of new ministers was an underwhelming development for India's markets, disappointing investor expectations that professionals would be brought in for ministries targeted for reforms such as railways and coal.
The investment bank said no ministries were merged even as some ministers were given more than one portfolio.
Still, Credit Suisse notes most new ministers have clean reputations, while those heading key ministries, expected to be the focus of reforms, are close to Prime Minister Narendra Modi.
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"We believe this may have been only the first of events where the pace of change disappoints the market's immediate expectations," Credit Suisse said in a report dated on Wednesday. "However, in line with the strength of the verdict, the underlying trends were nothing but constructive," it added, referring to Modi's big win in elections earlier this month.
