Festive season should be economic recovery barometer: CLSA

Mahesh Nandurkar, CLSA says India is the best performing emerging market this year and the coming festive season should be a barometer of its economic recovery.

“Note that autos, cement and power are already showing signs of improvement. We like domestic cyclical recovery plays such as banks, autos and cement. Among exporters, we prefer IT,” he adds.

Also read: Fed policy, WPI inflation data to guide mkt this week: Experts

Prabhat Awasthi, Nomura says a stronger dollar, driven by expectations of divergent monetary policies of the Fed and other major developed world central banks is positive for Indian equities on an overall basis.

Historically, broad dollar strength typically begins 6-9 months ahead of a rate tightening cycle, a phase we believe India is now entering, he adds.