CORE INFRA SECTORS
Core infra sectors grow 6.3% in May, maintain 6%-plus expansion for fourth straight month
Core infrastructure industries maintained growth above 6% for the fourth consecutive month in May, with notable increases in power generation and coal output. However, sectors like fertiliser and cement production witnessed contractions. Overall, the growth trajectory in the first two months of the fiscal year remains positive.
India's key infra sectors' growth slows to 6.3% in May
In May, India's eight core sectors grew at a rate of 6.3% annually, slightly down from 6.7% in April but higher than 5.2% in May 2023. The sectors showing positive growth included electricity, coal, steel, natural gas, and refinery products, according to the Ministry of Commerce & Industry
Fund Manager Talk | PSU stocks in 3 sectors offer value for long-term investors: Charanjit Singh, DSP Mutual Fund
We expect the Government to remain focussed on infra investment even during the third term. Since FY21, the government has focussed on building infrastructure with central government expenditure rising from 1.7% of GDP in FY21 to 3.3% of GDP in FY24.
Auto, auto ancillary sector a good theme to play the rural recovery: Devang Mehta
Some of the FMCG participants also came in this analyst guidance that most of these companies are now trying to come back and there was a decent volume growth which is seen.
Use this adversity to buy high quality companies at discounts: Nilesh Shah
Well, what looks to essentially be the go-to market strategy, if I may use those words, would essentially to look at the defensives. Sectors which have had an extended period of underperformance, which is FMCG, rural plays, IT, pharma, these will emerge to be the risk off trades or will emerge to be the defensive plays and it is quite possible that you will see some kind of recalibration, tweaking of allocations, sectoral allocations and it is quite possible that you will see some money move from the favoured lot to basically this lot.
Energy, manufacturing & infra to remain bedrock of India's bull market: Nilesh Shah
It is very likely that these very sectors are going to basically get a fresh impetus. You are right that yes, in term one, these pockets did not yield returns. But in the second term, especially post COVID, we have seen massive returns and I probably think that is only the start, be it defence, be it space, be it many of the other areas.
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PSBs seek changes to rules for Infra loans, may approach govt
State-owned lenders plan to approach the government seeking changes to terms governing performance bank guarantees (PBGs), timely compensation from concessioning authorities, and greater immunity for board members sanctioning funds for infrastructure projects as they firm up their response to Reserve Bank of India (RBI) draft rules on project financing that call for higher provisioning.
Expect 15-18% upside in Sun Pharma over medium to long term: Hemang Jani
Sun Pharma numbers were slightly below expectations in terms of EBITDA and we do think that though they have guided for a very strong growth through their speciality portfolio, that is a little bit time away.
Investing in thematic funds? Key factors you should keep in mind
Rustagi advises cautious investment in thematic funds, considering government focus areas like defence, infrastructure, and pharma post-election. He highlights the need for strategic timing, growth assessment, and exposure analysis to optimize sectoral investments.
Have some cash on sidelines; Kotak a good buy on dips; Titan too overvalued: Sandip Sabharwal
Sandip Sabharwal advises caution in the market due to uncertain valuations and growth trajectory. He highlights investment opportunities in auto companies, consumer goods, and infra firms amidst global economic shifts and upcoming elections. Sabharwal says: "Post results, Dabur looked like a decent proposition because it has underperformed for so many years and that is one consumer company which is saying that they are releasing growth uptake."
Careful with long-term financial cycles
A long-term financial cycle has coincided with, and bolstered, the current investment cycle. That's good and bad news for India's growing economy. The outcome is a higher investment-to-GDP ratio. But there is need for caution. If the financial cycle runs ahead of the business cycle unchecked, eventual stresses could be severe, worsening the inevitable downturn.
Inflation eases below 5% for the first time in five months in March; industrial production rises to a 4-month high
While inflation declined to a 10-month low in March, experts indicate it is unlikely to deter the Reserve Bank of India from lowering rates anytime soon, as it tracks monsoon and other external factors.
Transformative policy initiative
For startups spearheading indigenous EV solutions, this presents an invaluable opportunity to leverage global expertise and expedite technological advancements toward localised production under the Make in India initiative. Nevertheless, while the new EV policy marks a significant stride forward, challenges persist on the road ahead.
Renu Baid Pugalia’s top 3 capital goods picks keeping valuation in mind
Renu Baid Pugalia of IIFL Sec discusses the power crisis, capex, top picks like Cummins, Bharat Electronics, Larsen & Toubro, and the potential in the capital goods sector. The analysis covers private and government investments, thermal power challenges, and market opportunities. Pugalia also says, the kind of certainty of earnings which is there in Bharat Electronics is far superior to some of the other defence PSUs.
Bullish on construction & infra sector: Sandip Sabharwal
If there is overall market correction, the under performance of the previous cycle tend to also correct and that could give opportunities because ultimately consumption cannot remain so low for two-three years when the overall economy is doing decently.
Prefer non-financials; for NBFCs and banks, wait for rate cut: Gurmeet Chadha
Gurmeet Chadha says: "We are more constructive in non-financials. The way we are adding 25 lakh investors every month in capital markets. So the depository, the RTA agents, the AMCs are in my view better play and probably more structural and more asset light vis-a-vis some of the other financials. For NBFC and banks, you will possibly have to wait it out till the rate cut starts. In Paytm, we are seeing speculation. It is not investing because you do not know how deep the concern is."
What stocks to play to ride the government’s infra wagon? Sudip Bandyopadhyay answers
Sudip Bandyopadhyay says: “Some amount of caution is creeping in. Remember, we are heading to a result season. Day after tomorrow onwards, the IT big companies start announcing the results and the market will take cues from the results and move on. I think the next main trigger apart from the results will be the budget on 1st February.”
NCLT approves amalgamation, arrangement between JP Infra (Mumbai) entities
The scheme of amalgamation and arrangement between JP Infra (Mumbai) and its affiliated entities Four D Estates, Four D Buildspace and JP Infra Realty have been approved by NCLT. As all these entities belong to the same promoter group, the proposed demerger is expected to ensure alignment of the business verticals—JP Infra (Mumbai) and Four D Estates continuing in the brownfield redevelopment projects and JP Infra Realty in greenfield projects involving development of newly-acquired land parcels.
India's key infra sectors' growth slows to 7.8% in Nov from 12.1% in Oct
In November, India's eight key infrastructure sectors witnessed a year-on-year growth of 7.8%, down from the previous month's 12.1%, according to the Ministry of Commerce & Industry. The Eight Core Industries (ICI) index had grown by 5.7% in November 2022. Positive growth was observed in coal, electricity, fertilizers, natural gas, refinery products, and steel.
Inflation rises to 5.6% in November, industrial growth at 16-month high of 11.7%
India's consumer inflation rose 5.6% in November, but a festival surge and favorable base in October led to a 16-month high of 11.7% in industrial production. The Reserve Bank of India's monetary policy committee is expected to hold rates for the year and start cutting rates from next fiscal. The MPC held the policy rate at 6.5% for the fifth consecutive time in its last meeting but raised India's growth forecast for FY24 to 7% on the back of a strong showing in the second quarter.
A strong third quarter on the cards for the Indian economy
GST surged 15% from a year earlier to ₹1.68 lakh crore in November, as the festival season and strong economic activity contributed to growth, showed data released Friday. "At the moment, most of the other indicators seem to be suggesting that there is resilience in the economy," said Upasna Bhardwaj, chief economist, Kotak Mahindra Bank.
ETMarkets Smart Talk: Mispriced opportunities available in financials, infra and technology sectors: Ashwini Shami
According to Ashwini Shami of OmniScience Capital, there are mispriced opportunities in the financial, infrastructure, and technology sectors that offer long-term growth potential. Shami also states that largecap stocks present great investment opportunities. Despite the recent strengthening of US treasury yields, Shami believes that the impact on equity markets is already factored in. He expects India Inc. to continue its fundamental growth in Q2, and does not anticipate the India-Canada standoff to have a significant impact on the economy or markets.
Core sector growth eases marginally to 8% in July
While the continuation of government capex (both centre and states) in July led to a strong performance in steel and cement sectors, economists noted that the growth in cement and electricity sector, despite seasonal rains, indicated a progression of economic activity.
Froth building up in some pockets of broader market: Siddhartha Khemka
“Some of these stocks do have value. They had not participated. They were deeply undervalued and now the market is finding some value in them. Some of these, especially the public sector stocks, could continue to do well on the back of strong order books, strong demand and growth in business.”
Core sector growth touches 5-month high of 8.2% in June
India's core sector growth accelerated to 8.2% in June, the fastest in five months, as a capital expenditure push by the central and state governments supported expansion in cement and steel sectors, while energy-related products witnessed improvements.
ETMarkets Smart Talk: Sensex hits record highs! We continue to favor infra, capital goods, BFSI, and auto sectors: Sunil Garg
While the Nifty50 has made new highs, performance relative to global markets (the US in particular) has been lackluster. In fact, Nifty has under-performed SPX year-to-date.
India's infrastructure output slows to 6-month low of 3.5% in April
The growth in eight core infrastructure industries further moderated to 3.5 per cent in April on an annual basis after hitting a five-month low of 3.6 per cent in March. The index of eight core industries (ICI) measures combined and individual performance of production of core industries viz. coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity
Core sector output grows 7.9% in September
The output of eight core infrastructure sectors grew 7.9% in September 2022, as against 5.4% in the year-ago period, according to official data released on Monday. Infrastructure output accounts for nearly 40% of the Index of Industrial Production (IIP), i.e., industrial output. The output of eight core infrastructure sectors grew 3.3% in August, the lowest in nine months.
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