Neelkanth Mishra of Credit Suisse says low inflation supports overweight call on beneficiaries of lower interest rates like mortgage providers and metals.
We prefer Cholamandalam Investment, Havells, Bayer CropScience, Godrej Consumer, ITC, Bharti Infratel and Jubilant Foodworks and are underweight on Nestle, Colgate and TVS Motor, says Neelkanth Mishra of Credit Suisse.
Telecom sector has undergone change over the years especially after the entrance of Reliance Jio. While on one hand, the sector witnessed consolidation in terms of players, on the other hand, competitive intensity has been equally high, suggest experts.
Foreign investors pumped in $3.4 billion in the capital markets so far the month of March. The latest inflow follows a net investment of Rs 15,862 crore in equity and debt last month. Prior to that, FPIs had pulled out a total of over Rs 80,000 crore in October-January.
The sectors negatively impacted by rupee appreciation are IT, pharma, metals and private refiners. Beneficiaries include those with USD cost/rupee revenues or those with unhedged USD loans.
In an interview to CNBC-TV18‘s Sonia Shenoy & Udayan Mukherjee, Nirmal Jain of IIFL, Raamdeo Agarwal of Motilal Oswal and Neelkanth Mishra of Credit Suisse gave their take on what Arun Jaitely‘s Union Budget may look like and the road ahead.
In the last 3 months purchases by domestic mutual funds have more than offset foreign institutional investor outflows. It is tempting to assume that persistent domestic inflows into the equity market are likely to keep the market strong, Neelkanth Mishra of Credit Suisse says.
If corporate spending in the US increases on account of factors like taxes, Indian IT companies will benefit, said Neelkanth Mishra of Credit Suisse.
Ajay Kapur of Bank of America Merrill Lynch remains underweight on India, a view he has had since December 2015 although he acknowledges the recent drop in Risk-Love there.
Neelkanth Mishra of Credit Suisse expects a slowdown in real estate and continued stress in the banking system to hurt growth for longer than current market expectations.
We would advise investors to be cautious now. In addition to the difficulties in distribution and the informal sector benefitting from formalisation, there is the risk of an economic slowdown, says Neelkanth Mishra of Credit Suisse.
We revert to an overweight on IT and pharma. Lower interest rates to benefit private banks and mortgage providers, says Neelkanth Mishra of Credit Suisse.
Speaking to CNBC-TV18 Neelkanth Mishra of Credit Suisse said that Donald Trump‘s victory has led to external readjustments in countries like Brazil and Indonesia.
Neelkanth Mishra of Credit Suisse says while the broader Indian market hasn't moved much in the last two months, it has continued to outperform global equities marginally.
we cut our long-standing overweight on consumer staples and deepen our underweight on IT and healthcare. We stay overweight on discretionary but two-wheelers may hurt, says Neelkanth Mishra of Credit Suisse.
Credit Suisse' Neelkanth Mishra expects repo rate to fall to a decade low in the coming quarters. He says that beginning December the market may see a robust and widespread pick-up which may boost indices.
Neelkanth Mishra of Credit Suisse remains positive on LIC Housing Finance, HDFC and Indiabulls Housing Finance. Top sells are Dr Reddy's Labs, HCL Technologies and Hindustan Unilever, says Anish Damania of IDFC.
Some analysts believe that the market's negative reaction to recent events in the IT space may be overdone.
A growth slowdown in the global economy is imminent as risks from events such as Brexit materialize even as the Indian economy continues to remain relatively stable, though not unimpacted.
Mishra says he remains positive on the economy and on markets over 12-24 months, but the likelihood of a lacklustre relative performance near term is rising.
An economic recovery is firmly underway and finally showed in March quarter numbers but that a lot of it is already in the price, says Neelkanth Mishra, Head - Equity Strategy, India, Credit Suisse.
"Outperforms include ICICI Bank, L&T, BPCL, HUL, Tata Motors, Shriram Transport and underperforms include SBI, Bharti Airtel & BHEL," Neelkanth Mishra of Credit Suisse says
"We cut underweight on financials and flip to overweight on metals, funding it from low-growth sectors such as IT and utilities. We maintain overweight on HUL, BPCL, Maruti, and HDFC & underweight on SBI & Bharti Airtel," Neelkanth Mishra of Credit Suisse says.
Neelkanth Mishra does not expect any meaningful improvement in aggregate March quarter earnings since banks' financial performance will be under pressure because of asset quality issues.