HSBC says ITC a 'winner'; upgrades to 'overweight'

Reuters Market Eye - HSBC upgrades ITC Ltd to "overweight" from "neutral", while maintaining its target price of 400 rupees, citing prospects of earnings growth "resilience."

Although HSBC says it expects discretionary spending in India to remain "lacklustre" amid a "challenging" economic environment, it says the recent correction in ITC makes it attractive.

"Our strategy is to pick long term winners that still build in reasonable growth expectations and offer earnings growth resilience in this uncertain economic climate," HSBC said.

ITC shares are trading up nearly 1 percent at 10.04 a.m.

(Reporting by Abhishek Vishnoi)