Capex cycle in India unlikely to recover quickly: Barclays

Bhuvnesh Singh, Barclays says the capex cycle in India is unlikely to recover quickly given the excess capacity build out in sectors like utilities and materials.

With economic growth turning a corner, he believes that consumer-oriented sectors should be the first to improve their earnings and returns. “Recovery of the capital goods sector could be even more delayed as current excess capacities get absorbed,” he adds.

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He said consequently, the brokerage house maintains its preference for consumer-oriented sectors in India like autos, telecom and private sector banks.