CLSA says Indian economic recovery not visible yet
Autos is the only sub-segment where data have improved substantially in the past three months. Several other indicators such as cement and power remain weak.
By Sanam Mirchandani, ET Bureau |
MUMBAI: In its latest market strategy report, brokerage firm CLSA has said that its analysis of over 40 high frequency indicators shows that a recovery in Indian economy is not yet visible.
Moreover, an extended monsoon has offset the positive impact of an early Diwali this year.
" Autos is the only sub-segment where data have improved substantially in the past three months. Several other indicators such as cement, power, commercial vehicles and rail freight remain weak in low single digits/decline," it said.
On the upcoming US elections, CLSA said the Democratic Party's candidate Hillary Clinton's victory is looking more likely. CLSA said a Clinton win could be a negative for Indian pharmaceutical companies and has reduced the weightage on Sun Pharmaceutical Industries by two percentage points.
The brokerage has added Vedanta and Bharat Forge to its model portfolio and removed Hindustan Petroleum Corporation.
"With the expected fiscal stimulus in the US post-elections and its potential positive impact on commodities and local industrial activities, we add Vedanta and Bharat Forge. Higher oil prices would be a negative for oil marketing companies. So, we remove HPCL from the model portfolio but maintain IOC ( Indian Oil Corporation) as a value/dividend yield play," he said.
Moreover, an extended monsoon has offset the positive impact of an early Diwali this year.
" Autos is the only sub-segment where data have improved substantially in the past three months. Several other indicators such as cement, power, commercial vehicles and rail freight remain weak in low single digits/decline," it said.
On the upcoming US elections, CLSA said the Democratic Party's candidate Hillary Clinton's victory is looking more likely. CLSA said a Clinton win could be a negative for Indian pharmaceutical companies and has reduced the weightage on Sun Pharmaceutical Industries by two percentage points.
The brokerage has added Vedanta and Bharat Forge to its model portfolio and removed Hindustan Petroleum Corporation.
"With the expected fiscal stimulus in the US post-elections and its potential positive impact on commodities and local industrial activities, we add Vedanta and Bharat Forge. Higher oil prices would be a negative for oil marketing companies. So, we remove HPCL from the model portfolio but maintain IOC ( Indian Oil Corporation) as a value/dividend yield play," he said.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
